The World Bank has extended a loan to Country X to build a new toll road and counts on the repayment of the loan from the collected tolls
After the funds have been transferred to the country, the government decides to spend the money to build a new presidential palace. This is an example of
A) adverse selection. B) hostile selection. C) government risk. D) moral hazard.
D
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The measurement of income distribution that splits income earned among the various factors of production (inputs) is called the
A. family distribution of income. B. personal distribution of income. C. functional distribution of income.
A person who voluntarily quits his/her job in New York and expects to get a similar job in Los Angeles is an example of:
a. frictional unemployment. b. structural unemployment. c. durational unemployment. d. cyclical unemployment.
Refer to the above graph. It shows a profit-maximizing, purely competitive firm operating in the short run. Which area in the graph represents the amount of economic loss for the firm?
A. abef B. acdf C. bcde D. 0beg
How does a firm raise external funds through direct finance?
What will be an ideal response?