Accounts receivable loans provided by finance companies provide firms with:
A. start-up capital.
B. the ability to turn a relatively illiquid asset into liquidity.
C. the ability to turn a liability into an asset.
D. inventory loans.
Answer: B
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Which of the following is true?
i. Comparative advantage drives international trade. ii. Compared to a no-trade situation, in a market with imports, producer surplus is larger. iii. Tariffs lower the domestic price of imported goods. A) only i B) only ii C) only iii D) i and ii E) i and iii
In the short run, when the Fed decreases the quantity of money
A) bond prices fall and the interest rate rises. B) bond prices rise and the interest rate falls. C) the demand for money increases. D) the supply of money curve shifts rightward.
How are tradable pollution permits used?
a) They are permits bought by firms where prices are set by governments. b) They will be bought by firms that can reduce pollution only at high costs. c) They will be bought by firms that can reduce pollution at low costs. d) They will be used in reducing pollution when corrective taxes cannot be used.
Selling a product below cost to gain a foothold in the market in order to eliminate the inefficiencies introduced by lock-in is known as:
A. limit pricing. B. penetration pricing. C. predatory pricing. D. the price-cost squeeze.