Kendrick wants to start a tax preparation company and is going to his bank to borrow $50,000. This is an example of
A) direct finance.
B) indirect finance.
C) a primary market transaction.
D) a secondary market transaction.
Answer: B
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A production possibilities frontier can shift outward for all of the following reasons except one. Which is the exception?
a. a decrease in the unemployment rate b. an improvement in labor skills c. an improvement in technology d. a larger work force e. a larger capital stock
Doctors in private health care clinics provide better care than those in public clinics because:
A. they are better trained. B. they have more incentive to practice good medicine. C. their fixed salary is generally higher than the fixed salaries of public clinic doctors. D. their facilities are generally much more updated than public facilities.
In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:
A. the brain drain. B. human capital. C. certification. D. credentialism.
The aggregate demand curve shows the relationship between planned purchases of
A. all final goods and services and total planned production. B. all final goods and services and nominal GDP. C. all final goods and services and interest rates. D. all final goods and services and the price level.