What is microfinance?
What will be an ideal response?
Microfinanc involves lending small amounts to poor borrowers using peer lending groups. It has become an important new tool in encouraging entrepreneurship in developing countries.
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Revenue maximization occurs when a firm sells at a price
A) that is equal to its minimum average variable cost. B) where its marginal revenue is equal to its marginal cost. C) where its marginal revenue is zero. D) None of the above
You have decided to purchase, directly from the French manufacturer, a helicopter that costs 800,000 euros. At the equilibrium exchange rate between dollars and euros in Figure 36.1, this purchase will cost you
A. $1,600,000. B. $800,000. C. $200,000. D. $400,000.
Tax-haven subsidiaries categorically referred to as International Offshore Financial Centers have all of the following characteristics EXCEPT ________.
A) a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm. B) a stable currency to permit easy conversion of funds into and out of the local currency. This requirement can be met by permitting and facilitating the use of Eurocurrencies. C) a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders. D) All of these answer choices are characteristics of tax-haven subsidiaries.
Using Figure 2 above, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE3 might be:
A. exports decrease. B. consumption spending increases. C. investment decreases. D. imports increase.