Creditors require collateral in many cases, because
A) it helps offset the risks of lending the funds.
B) the borrower is a low risk.
C) the loan is small.
D) none of the above.
Answer: A
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Describe the Cournot model
What will be an ideal response?
The line of perfect income equality is
A. X. B. Y. C. Z. D. not shown on this graph.
Production quota set below the equilibrium quantity has big effects:
What will be an ideal response?
Consider the short-run supply curve for a perfectly competitive industry. In general, which of the following statements are true?
A. The industry supply curve tends to be flatter (more elastic) than the horizontal sum of all the industrial firms' supply curves. B. The short-run industry supply is obtained by horizontally summing the supply curves of all the individual firms in the industry. C. Short-run supply for a perfectly competitive industry is flat for constant cost industries. D. both a and b E. none of the above are true in general