Which of the following affects the interest rate on a loan?
a. all of the following
b. the duration of the loan
c. the tax treatment of the loan
d. the administrative cost of the loan
e. the risk of default on the loan
A
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In order for mutually beneficial trade to occur between two otherwise isolated nations
A. each nation must be able to produce at least one good absolutely cheaper than the other. B. each nation must be able to produce at least one good relatively cheaper than the other. C. one nation's production must be labor-intensive while the other nation's production is capital-intensive. D. each nation must face constant costs in the production of the good it exports.
Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.30 and, at its current production level, Sweet Husks has a marginal cost of $.40 per ear. Which of the following statements is true?
A) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should decrease production to maximize its expected profit. B) Because the expected profit from an additional ear of corn is -$0.10, Sweet Husks should decrease production to maximize its expected profit. C) Because the expected profit from an additional ear of corn is $0.70, Sweet Husks should increase production to maximize its expected profit. D) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should increase production to maximize its expected profit.
Identify the international organization that makes loans to developing countries
a. The World Bank b. The Federal Reserve c. The World Trade Organization d. The Industrial Development Board e. The Bank of England
In order to internalize the externality due to pollution, the government should impose a tax based on
A. the value of the pollution-causing business activity. B. the physical amount of pollution. C. the size of the firm causing the pollution. D. the economic damage associated with the pollution.