Economic agents can raise money capital by ________
A) issuing liabilities
B) repaying a loan
C) paying taxes
D) providing a subsidy
A
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When oil and energy prices rise, the economy tends to experience ________.
A. cost-push inflation B. natural inflation C. demand-pull inflation D. unexpected inflation
A perfectly competitive firm will have an economic profit of zero if, at its profit-maximizing output, its marginal revenue equals its
A) average total cost. B) marginal cost. C) average variable cost. D) average fixed cost.
The government sets up a lighthouse to prevent ships from crashing into rocks near the shore. The lighthouse is an example of a _____
a. merit good b. club good c. public good d. private good
Governments are said to fine-tune the economy when they attempt to use fiscal policy to:
A. keep the economy always at its target or potential level of income. B. offset only large fluctuations in aggregate demand. C. offset fluctuations in aggregate supply. D. eliminate unemployment.