Banks require collateral for loans in order to
A) ensure that borrowers have significant amounts of their own funds invested in their businesses.
B) charge higher interest rates on loans.
C) reduce their tax liability on the interest they collect on loans.
D) reduce the total amount they are obliged to lend to any one borrower.
A
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Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000 . The imaginary country of Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000 . Which of the following is correct?
a. Basova had higher productivity and higher real GDP per person. b. Andovia had the higher productivity and higher real GDP per person. c. Basova had the higher productivity while Andovia had the higher real GDP per person. d. Andovia had the higher productivity while Basova had the higher real GDP per person.
Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?
A. An increase in supply with a decrease in demand will result in an increase in price. B. An increase in supply with no change in demand will result in an increase in price. C. An increase in supply with no change in demand will result in a decline in sales. D. An increase in demand with no change in supply will result in an increase in sales.