Brand-new, technologically innovative companies often receive capital from companies that specialize in high-risk start-up firms and sometimes get involved in the strategic decisions of the firm. These investment companies are known as
A. mutual funds.
B. venture capitalists.
C. brokerage houses.
D. investment banks.
Answer: B
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Following the devastation of Hurricane Hugo, Charleston, South Carolina was cut off from the outside world and without electricity. Prices for bagged ice rose by 1,000 percent and electric generators by 300 percent and at least one tree removal firm charged $4,000 to cut up a tree. City government responded by passing an emergency law prohibiting price “gouging.” This law is an example of
A. the cost disease of services. B. a price ceiling. C. the laissez-faire rule. D. the indispensable necessity syndrome.
Price ceilings and price floors:
A. make the rationing function of markets more efficient. B. interfere with the allocation function of prices. C. cause surpluses and shortages in markets respectively. D. cause demand and supply curves to shift thus having no effect on the rationing function of prices.
Which of the following is NOT a true statement?
A) It is unclear whether any of the decline in U.S. manufacturing employment can be attributed to Chinese growth. B) China's growth has been beneficial to many countries. C) China does not import many goods. D) China had large trade surpluses.
If the combination r = 5% and Y = $100 billion is on the Fed rule line, we know that the combination r = 7% and Y = $100 billion would represent
A. a movement up the Fed rule. B. the Fed rule shifting to the left. C. the Fed rule shifting to the right. D. a movement down the Fed rule.