Private entrepreneurs are likely to make better investment decisions than central planners because
A) entrepreneurs can often turn a project's failure into a request for additional funding to rectify the "problem".
B) the failure of a government project reduces the personal wealth of the planners involved in the decision.
C) entrepreneurs seek ever larger budgets, while planners are more focused on cost reductions and efficiency.
D) investors who make mistakes must bear the costs of these mistakes personally.
D) investors who make mistakes must bear the costs of these mistakes personally.
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Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being earned by firms in this industry equals exactly 5%. Which of the following is likely to follow from this scenario?
A. New firms will want to enter the industry. B. The normal rate of return will fall to 5% in the long run. C. Firms will collude to keep competition out. D. Firms will want to leave the industry.
The financial crisis of 2007-2009 worsened after the failure of which firm?
A) General Motors B) Lehman Brothers C) Bear Stearns D) American International Group (AIG)
For direct price discrimination to work effectively
a. The low-valued group should not be able to arbitrage b. Charge the same price to the different groups c. Both groups should have the same elasticity of demand d. None of the above
Other things the same, an increase in the interest rate makes the quantity of loanable funds demanded
a. rise, and investment spending rise. b. rise, and investment spending fall. c. fall, and investment spending rise. d. fall, and investment spending fall.