A bank charges one borrower (A) 8 percent interest per year and another borrower (B) 10 percent interest per year. Which of the following is a plausible reason for the higher interest rate for B?
A. A is borrowing the money for a longer period than B
B. A is borrowing a larger amount than B
C. B is using the money for a less risky project than A
D. B has a better credit rating than A
B. A is borrowing a larger amount than B
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If people expect the foreign exchange rate for dollars to rise in the future
A) the demand for dollars today decreases. B) the demand for dollars today increases. C) the demand for dollars today is unaffected. D) there is a movement along the demand curve for dollars.
How does the imposition of an excise tax on a good affect its market equilibrium?
A) Equilibrium quantity decreases, and equilibrium price decreases. B) Equilibrium quantity decreases, and equilibrium price increases. C) Equilibrium quantity increases, and equilibrium price decreases. D) Equilibrium quantity increases, and equilibrium price increases
Which of the following is considered an advantage of a sole proprietorship?
A) easy to raise large sums of capital B) limited liability for owner C) profit taxed only once D) permits effective specialization
The five forces model is a framework
a. For increasing buyer power in the market b. For improving competition in the industry c. For analyzing the attractiveness of an industry d. For increasing supplier power in the market