Moody's Investors Service is able to make a profit because
A) most investors are irrational.
B) of the existence of adverse selection problems.
C) fluctuations in interest rates make default risk on corporate bonds difficult to gauge.
D) small investors like the mutual funds they sell.
B
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If the government were to decrease corporate income tax, we would predict a:
A. shift in aggregate demand to the left. B. downward movement along the aggregate demand curve. C. shift in aggregate demand to the right. D. shift straight down of aggregate demand.
The Heckscher-Ohlin theorem explains why the U.S. both imports and exports cars.
Answer the following statement true (T) or false (F)
Refer to the scenario above. If the government enforces a ban on Firm B, and asks Firm A to carry out all the production:
A) Firm A's marginal cost is likely to decrease, but its average cost is likely to increase. B) Firm A's marginal cost and average cost are likely to decrease. C) Firm A's marginal cost is likely to increase, but its average cost is likely to decrease. D) Firm A's marginal cost and average cost are likely to increase.
Arguments by regulators are often made that predatory pricing, with its attendant temporary price-cutting below costs, is an attempt to eliminate rivals with the intent of raising prices after the competition has left
Critically evaluate this argument.