The practice of factoring involves
A) the syndication of underwriting large security issues.
B) the selling of accounts receivable at a discount in return for cash.
C) breaking up large mutual funds into smaller funds.
D) spreading the risk of insurance through reinsurance.
B
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The total labor hours that all the firms in the economy plan to hire during a given time period at one particular real wage rate is the
A) demand for labor. B) supply of labor. C) quantity of labor demanded. D) quantity of jobs supplied. E) quantity of labor supplied.
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2 percent decrease in the number of books sold. Which of the following is true?
a. Demand for books is price elastic. b. The store's sales revenue did not change. c. Demand for books is price inelastic. d. Demand for books is perfectly inelastic. e. The bookstore could increase revenue by further lowering prices.
Why do economists prefer to compare Real GDP figures for various years instead of GDP figures?
A) Because when GDP in one year is higher than in another year, there is no way to tell why it is higher. Is it because output is higher, prices are higher, etc.? This is not the case with Real GDP. If Real GDP is higher in one year than in another year, it is because output is higher. B) Because when GDP in one year is higher than in another year, there is no way of knowing if the quality of goods produced is higher in one year than the other. This is not the case with Real GDP. If Real GDP is higher in one year than in another year, it is because the quality of the goods produced is higher. C) Actually the question is incorrect. Economists prefer to compare GDP figures instead of Real GDP figures. D) Because Real GDP is easier to compute than GDP. E) Because when GDP in one year is higher than in another year, there is no way to tell if the quality of life is higher in one year than the other. This is not the case with Real GDP. If Real GDP is higher in one year than in another year, it is because the quality of life is higher.
Answer the following statements true (T) or false (F)
1) Because families can afford to have more children, population growth is greater in the IACs than in the DVCs. 2) The capricious universe view is the idea that the IACs are exploiting the DVCs. 3)An advantage of direct foreign investment (compared to foreign loans) is that management skill and technological knowledge often accompany such capital flows. 4) Reduction of tariff barriers against DVC imports would benefit both the DVCs and the IACs.