Conflicts of interest may arise within the credit rating agencies because
A) the investors pay the credit agencies for ratings.
B) the issuers of debt securities pay the credit agencies for ratings.
C) the credit rating agencies provide auditing services to issuers of debt securities.
D) the credit rating agencies are involved in offering credit counseling to investors.
B
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The yardstick most often used to compare living standards is:
a. aggregate demand b. Gross National Product c. output per capital d. international investment
Economic rents are useful because
A. they increase tax revenue. B. they make it easy to calculate opportunity cost. C. they increase the income of the owner. D. resources will go to their most efficient use.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
You accidentally run into your next door neighbor's fence and destroy it. Your neighbor sues you and you are required to pay $1,000 to repair the fence. This is an example of
A. the Coase theorem. B. a liability rule. C. the free-rider problem. D. an injunction.