American businesses get their external funds primarily from

A) bank loans.
B) bonds and commercial paper issues.
C) stock issues.
D) loans from nonbank financial intermediaries.


D

Economics

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The cost of group health insurance is lower than if an individual buys a policy on his own because

A) moral hazard costs of a group tend to move to a low average. B) insuring a group eliminates the problem of buyers having more information than the seller. C) it is easier for the company to deny claims from a large group. D) the problem of adverse selection is reduced.

Economics

Market failures ________ and generate ________

A) compel the government to act; regulations B) create monopolies or oligopolies; deadweight loss C) reduce economic efficiency; deadweight loss D) create deadweight loss; externalities

Economics

The concept of economies of scale becomes especially relevant to international trade when it enables

a. numerous small producers to supply the entire country. b. one or two large producers to supply the entire country. c. numerous large producers to supply the entire country. d. one or two small producers to supply the entire country.

Economics

The present value of a sum to be received in the future is greater

A. the greater the discount rate. B. the greater the interest rate. C. the greater the inflation rate. D. the less the time period before receiving the sum.

Economics