Which of the following is used by lenders to reduce the problems that arise from asymmetries of information?
A) patent contracts
B) collateral
C) decreased interest rates
D) restrictive contents
B
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Which of the following is likely to happen when the interest rate falls?
A) The volume of economic activity will reduce. B) The labor demand curve will shift to the left. C) Equilibrium wage rate will fall. D) The labor demand curve will shift to the right.
Which of the following is not an exchange rate system?
a. Flexible exchange rates b. Crawling peg c. Fixed exchange rates d. Managed floating e. Purchasing power parity
The concept that people should pay taxes based on the benefits they receive from government services is called
a. the ability-to-pay principle. b. the benefits principle. c. horizontal equity. d. vertical equity.
Economies of scale in nuclear power plants exist because of
A) more efficient plant management. B) a better understanding of the plant's idiosyncrasies, or learning-by-doing. C) nuclear power technology changes. D) both A and B.