Price takers face a perfectly inelastic demand curve
Indicate whether the statement is true or false
False
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Adverse selection is a barrier to financing global growth because
A) of the differences between financing using loans, portfolio investment and foreign direct investment. B) if investors have trouble identifying high-risk firms they may be unwilling to lend funds to creditworthy firms. C) firms sometimes have trouble determining whether they need funds or not. D) there is the possibility that the funds are used for riskier behavior than the lender agreed to.
Explain the following statement: Individuals with different tastes might have the same tastes at the margin at their current consumption bundles.
What will be an ideal response?
Laws that assign owners the rights to use assets as they see fit are called
a. human rights. b. economic rights. c. property rights. d. government rights.
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $6 and a quantity of 40 units. If the government imposes a $2 per-unit tax on this product, consumer surplus will fall from:
A. 80 to 45. B. 160 to 80. C. 90 to 45. D. 160 to 90.