Credit may dry up at the start of an economic downturn because of all of the following except:
A. the free-rider problem worsens during a downturn.
B. lenders require information and accurate information is more difficult to obtain.
C. it becomes more difficult for lenders to determine the creditworthiness of borrowers.
D. lenders see greater risk in making loans to borrowers.
Answer: A
Economics
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The Federal Reserve is a branch of the Treasury Department, and is therefore subject to significant government control
Indicate whether the statement is true or false
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Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What is his economic profit?
A) $14,000 B) $24,000 C) $32,000 D) $34,000
Economics