Isolating Mechanisms Are

question 34

Multiple Choice

Isolating mechanisms are:

• A)Barriers to the erosion of interfirm profit differentials
• B)Mechanisms that impede the equilibration of rents between industries
• C)The same as "barriers to mobility"
• D)Sources of disequilibrium that cause the profitability of different firms in an industry to diverge over time

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Definitions:

Strict Foreclosure

A legal process by which the secured lender obtains the title to the mortgaged property without the sale thereof, when the borrower fails to meet the obligations.

Deficiency

The difference between the amount owed on a loan and the amount recovered from selling the asset securing the loan if the latter is less.

Mortgagor

A mortgagor is an individual or entity who borrows money to purchase property and pledges that property as security for the loan.

Mortgagee's Interest

The financial interest a lender has in the property serving as collateral for a loan until the mortgage is fully repaid.