A bank's commitment to provide a firm with loans up to pre-specified limit at an interest rate that is tied to a market interest rate is called
A) an adjustable gap loan.
B) an adjustable portfolio loan.
C) loan commitment.
D) pre-credit loan line.
C
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An increase in price will result in no change in total revenue if:
A) the percentage change in price is large enough to cause quantity demanded to fall to zero. B) the coefficient of elasticity is equal to zero. C) the percentage change in quantity demanded is equal to the percentage change in price (in absolute values). D) the demand function is perfectly elastic.
Which statement is true?
A. Entrepreneurial ability is in short supply in the U.S. B. Land, labor and capital may be considered passive resources. C. The concept of opportunity cost is irrelevant when there is scarcity. D. None of these statements are true.
A firm may pay efficiency wages in an attempt to
a. entice workers to work the night shift rather than the day shift. b. improve productivity by reducing turnover. c. reduce costs by attracting the least-skilled workers to apply for job vacancies. d. All of the above are correct.
The practice of outsourcing has been given a boost by
A) advances in telecommunications and computer networking. B) support from organized labor. C) firms that are becoming more risk-averse. D) sharp increases in the cost of overseas labor.