Adverse selection is a problem
A) unique to direct finance.
B) unique to indirect finance.
C) arising before a transaction is consummated.
D) arising after a transaction is consummated.
C
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Income tax acts as a shock absorber because
A. it makes disposable income, and thus consumer spending, less sensitive to fluctuations in GDP. B. it makes disposable income, and thus consumer spending, more sensitive to fluctuations in GDP. C. it makes disposable income, and thus consumer spending, independent of fluctuations in GDP. D. none of these.
Refer to Figure 3-4. At a price of $20, how many units will be supplied?
A) 400 B) 500 C) 600 D) 800
Cici's Pizza Most pizza restaurants charge by the pie or by the slice. Cici's has found a niche by charging a flat rate for the meal and allowing as many visits to the pizza buffet as the customer desires. How does this affect the make-up of its clientele?
If a transaction in the balance of payments of Country A enters the foreign exchange market, then it is fair to say that:
a. Actually by definition, transactions in a nation's balance of payments cannot enter into the foreign exchange market. b. Uses of funds in Country A's balance of payments are supplies of Country A's currency in the foreign exchange market. c. Uses of funds in Country A's balance of payments are demands for Country A's currency in the foreign exchange market. d. Sources of funds in Country A's balance of payments are demands for foreign currencies in the foreign exchange market.