Usury laws typically regulate
A. interest rates paid on savings.
B. interest rates charged on loans.
C. rents charged on land.
D. economic rent earned in all factor markets.
Answer: B
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Quick Auto Service will do oil changes. If each oil change is done by five people, each of whom specializes in one task, this is an example of
A) economies of scope. B) team production. C) economies of monitoring. D) economies of coordination.
It is difficult to determine if foreign companies are selling their products for prices below their costs of production because
A) the true costs of production are difficult to calculate. B) the firms have no legal obligation to reveal this information. C) costs are calculated in the firms' local currencies. D) domestic taxes increase the firms' costs but it is difficult to determine the incidence of these taxes.
The objective of Operation Twist was to:
A. stimulate aggregate demand by lowering long-term interest rates. B. stimulate aggregate demand by lowering short-term interest rates. C. reduce inflationary pressure by raising long-term interest rates. D. reduce inflationary pressure by raising short-term interest rates.
Which type of merger is most likely to be the focus of antitrust scrutiny and enforcement?
A. Conglomerate B. Horizontal C. Vertical D. Natural