When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in

A) a contraction of economic activity.
B) an economic boom.
C) an increased opportunity for growth.
D) a call for government regulation.


A

Economics

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A tax structure is called progressive when

A. the average tax rate on low-income groups exceeds the tax rate of high-income groups. B. the average tax rate decreases if income decreases. C. the average tax rate is constant, but the absolute amount of taxes paid increases with income increases. D. high-income groups pay more taxes absolutely than do low-income groups.

Economics

Refer to Figure 4-18. As a result of the tax, is there a loss in producer surplus?

A) No, because the consumer pays the tax. B) Yes, because producers are not selling as many units now. C) No, because the market reaches a new equilibrium D) No, because producers are able to raise the price to cover their tax burden.

Economics

The Wells Fargo Bank Tower in downtown Los Angeles displays a sign at its parking entrance that clearly shows that the per-hour parking charges are higher for people who visit the building for a short while. How is this consistent with the general principle of price discrimination?

Economics

Answer the following statements true (T) or false (F)

1) The vast majority of the labor forces of the low-income DVCs are engaged in agriculture. 2) Most of the DVCs of the world are located in Western Europe. 3) DVCs tend to have permanent shortages of farm labor. 4) Most nations of the world are now IACs, not middle- and low-income DVCs. 5) The most important growth obstacle common to all DVCs is the lack of desire to increase their standards of living.

Economics