Creditors supply loans to sole proprietors at a high rate of interest because of:
a. their low profit expectancy from this business.
b. frequent experience of loan default.
c. their inability to call in their loans or sell them to others.
d. their general risk-averse nature.
C
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In the United States -since 1981- which two of the following have almost always moved in the same direction?
A) net exports and the government sector balance B) net exports and the private sector balance C) the government sector balance and the private sector balance D) none of the above
Elasticity of demand is calculated by dividing the change in quantity by the change in the price of a good.
Answer the following statement true (T) or false (F)
Which is true about the means of production?
A. Under capitalism it is privately owned, and under fascism it is owned by the government. B. Under fascism it is privately owned, and under capitalism it is owned by the government. C. Under both capitalism and fascism it is owned by the government. D. Under capitalism and fascism it is privately owned.
A purely competitive firm:
A. must earn a normal profit in the short run. B. cannot earn economic profit in the long run. C. may realize either economic profit or losses in the long run. D. cannot earn economic profit in the short run.