Risk is shifted to the owners of a firm. In return they receive
A) normal wages.
B) residual income.
C) normal profit.
D) marginal profit.
B
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Investment is a positive function of the national income level
Indicate whether the statement is true or false
By offering lower prices to customers who buy a large quantity, a monopoly is price discriminating
a. True b. False Indicate whether the statement is true or false
A liberal economist would never recommend that policy makers cut union wages.
Answer the following statement true (T) or false (F)
Answer the following statements true (T) or false (F)
1. Interest represents a cost to the borrower, but an income to the lender. 2. The demand curve for loanable funds illustrates the behavior of lenders or savers. 3. The quantity of loanable funds supplied is inversely related to the interest rate. 4. A decrease in the supply of loanable funds would tend to lower the interest rate. 5. If people became thriftier and saved more, the loanable funds theory predicts that the equilibrium interest rate would decrease.