Regulating firms so that they always receive a guaranteed profit rate will lead to greatest efficiency
a. True
b. False
Indicate whether the statement is true or false
False
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Risk that is related to the uncertainty about interest rate movements is called
A) default risk. B) interest-rate risk. C) the problem of moral hazard. D) security risk.
If the total cost curve is greater than the total revenue curve at every level of output, the firm incurs a loss
Indicate whether the statement is true or false
Refer to the diagrams. The case of an inferior good is represented by figure:
A. A.
B. B.
C. C.
D. D.
The 2006-2007 recovery of stock prices from their 2000-2001 collapse was largely a reflection of
A. increased earnings forecasts and low long-term interest rates. B. the Enron scandals. C. reduced earnings forecasts and high long-term interest rates. D. the Democrat sweep of Congress.