When the credit demand curve is relatively flat:
A) the quantity of credit demanded is relatively sensitive to changes in the real interest rates.
B) the quantity of credit demanded is relatively sensitive to changes in the taxation rates.
C) the quantity of credit demanded is not responsive to changes in the taxation rates.
D) the quantity of credit demanded is not responsive to changes in the real interest rate.
A
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A professional basketball franchise is trying to assemble a parcel of land to build an arena. There are 25 houses on the land the franchise needs. In this case,
A) eminent domain can reduce transactions costs and make a pie-increasing arena possible. B) eminent domain can reduce the likelihood of holdouts and make a pie-increasing arena possible. C) eminent domain is not called for as the land can probably be acquired more efficiently through bargaining. D) Both A and B are correct.
What is the ratio that defines labor productivity?
A) (Y/N) B) (Y/Q) C) (Y/A) D) (Y/K)
Joe has broken the mirror of my car. I have legal recourse to sue for damages because of
A) social costs. B) transactions costs. C) common property rights. D) private property rights.
Information asymmetry is a problem when:
A. a buyer and seller have aligned incentives. B. a buyer and seller have opposing incentives. C. a market is highly efficient. D. a market is highly inefficient.