Author Question: For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an ... (Read 142 times)

lak · **on:** Jul 1, 2018

For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of moral hazard?
a. After the loan has been made, individuals become careless with their finances
b. Individuals most likely to default are the ones most likely to apply for the loan
c. Lenders performing a credit check on all potential borrowers
d. None of the above

Question 2

What is the marginal revenue of producing the fourth unit?
a. 90
b. 40
c. 20
d. 180