When U.S. house prices began to fall in 2007:
A. most people negotiated lower mortgage rates, so few were forced to sell their houses.
B. banks made it difficult for homeowners to negotiate higher mortgage rates, which led to a decrease in the supply of houses.
C. many Americans were forced to sell their homes because they could no longer take out loans against the rising value of their houses.
D. the demand for affordable housing increased, leading house prices to stabilize.
Answer: C
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Which of the following things does not have an objective cost?
A) Platinum B) Water C) Ski lift tickets D) Medical equipment E) None of the above has an objective cost.
Refer to Table 4-8. If a minimum wage of $10.00 is mandated there will be a
A) shortage of 40,000 units of labor. B) surplus of 20,000 units of labor. C) surplus of 40,000 units of labor. D) shortage of 20,000 units of labor.