One reaction of firms to the adverse selection problem is to
A) rely on internal funds to finance investment.
B) use the stock market rather than the bond market to raise funds.
C) use the bond market rather than the stock market to raise funds.
D) borrow long-term rather than short-term.
A
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A sales tax imposed on sellers of a good
A) decreases the demand and shifts the demand curve rightward. B) decreases the supply and shifts the supply curve leftward. C) decreases both the demand and the supply and shifts both the demand and supply curves leftward. D) decreases the supply and shifts the supply curve rightward. E) has no effect on either the demand or the supply.
The South's economy was based on production of
A. iron, steel and textiles. B. corn, wheat and soybeans. C. tobacco, cotton and rice. D. iron, wheat and cotton.
If the index of intra-industry trade is high, products are probably ______, and costs in both nations are ______.
a. identical; different b. differentiated; similar c. identical; similar d. differentiated; different
Current income is 300, expected future income is 363, and the interest rate is 10%. If consumption is to be the same in each period, each period’s consumption must be
a) 330 b) 300 c) 331.5 d) 333 e) 363