Which of the following is an example of risk in capital budgeting on a global basis?
A) exchange rate changes
B) tariff changes
C) expropriation
D) All of the above
D
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Define the term rent. Explain why confiscation of rents would cause more than a simple transfer of income from resource owners to the government.
What will be an ideal response?
Voluntary agreements about cleaning up pollution attempt to
A) internalize externalities. B) internalize private costs. C) externalize social costs. D) externalize private costs.
Price ceilings are intended to address the problem of
A. Business bankruptcies. B. Inefficiency in production. C. Inequity in the distribution of goods and services. D. Shortages.
Suppose that only one curve shifts. If you observe that the equilibrium price and equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply. B. increase in demand. C. increase in supply. D. decrease in demand.