How does a recession impact the financial markets?
A. It increases stock prices.
B. It increases loanable funds.
C. It decreases loanable funds.
D. It decreases risk.
Answer: C
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One reason De Beers has lost some of its monopoly power is:
A. antitrust laws B. competition from Canadian and Russian diamond mines. C. pressure from consumers. D. All of these statements are true.
Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to require a permit for each ton of manure applied. The government gives each farmer 50 permits. Farmer A incurs losses of $25 for each ton of manure he does not apply, and Farmer B incurs losses of $50 for each ton of manure he does not apply. What is the total cost of
reducing runoff if firms are not allowed to buy and sell permits from each other? What is the total cost of reducing runoff if the firms are allowed to buy and sell permits from each other? a. $3,750; $2,500 b. $2,500; $3,750 c. $5,000 . $2,500 d. $3,750; $3,750
An increase in the price of steel will result in
A. a decrease in the prices of automobiles. B. an increase in the cost of labor to produce automobiles. C. an increase in the equilibrium quantity of automobiles. D. a decrease in the supply of automobiles.
If the economy is currently producing at a point on its production possibilities frontier (PPF), the economy is
What will be an ideal response?