Generally, when there is asymmetric information
A) a lender will only lend to the government.
B) a lender will only lend to well-known borrowers.
C) practical solutions are devised to allow lending to take place.
D) a lender will cease all lending activities.
C
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Suppose Political Party A proposes a tax cut on business income to stimulate the economy. Political Party B opposes the tax cut on business income asserting that it would only help businesses, not the average working man and woman
If you were hired as an economist for Political Party A, explain how the tax cut on business income would help the average working man and woman.
The concept of opportunity cost is illustrated by: a. a movement from the interior of the production possibilities curve to the frontier
b. a movement from the production possibilities curve to its interior. c. a movement from a point on the production possibilities curve to the northeast. d. a movement along the production possibilities curve, as production of one good falls in order to increase production of another.
If the law of diminishing marginal utility applies, then the marginal utility of my tenth pistachio nut is less than the marginal utility of my third pistachio nut
Indicate whether the statement is true or false
According to the theory of creative destruction, the greatest threat to a monopolist producer of electric typewriters is likely to be
a. government regulation b. international competition c. the entry of new electric typewriter producers d. growth in the computer industry e. stockholders demanding increased efficiency