The higher are a firm's risk-corrected returns

A. the more difficulty it will have financing its expansion plans.
B. the higher are its opportunity costs.
C. the more advantage it has in obtaining investor financing.
D. the lower are its labor costs.


Answer: C

Economics

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A) market advantage. B) absolute advantage. C) comparative advantage. D) specialization advantage.

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The twosector (manufacturing and agriculture) specific factors model assumes:

a. that there are increasing returns to labor. b. that there are diminishing returns to labor. c. that there are diminishing returns to capital in the agricultural sector. d. that there are diminishing returns to land in the manufacturing sector.

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The aggregate demand curve will shift to the right ________ the initial increase in government purchases

A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than

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Which of the following is not directly counted in GDP?

A) investment expenditures B) consumer goods C) government purchases D) intermediate goods

Economics