Suppose you place your savings in a time deposit at the bank, and that bank lends some of those funds to a business that desires a loan. This is an example of
A) direct finance.
B) indirect finance.
C) asymmetric information.
D) adverse selection.
B
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If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon, what is the percentage change in price?
A) 7.8 percent B) 12.5 percent C) 27.7 percent D) 57.5 percent
An upward-sloping labor supply curve means that
a. workers prefer to buy more leisure time when their incomes increase. b. workers prefer to supply less labor when wages are high. c. an increase in the opportunity cost of leisure leads workers to increase the quantity of labor they supply. d. All of the above are correct.
Fireworks would be considered:
A. a private good. B. a public good. C. an artificially scarce good. D. a common resource.
Refer to the above figure. Suppose that the economy was originally at point A, and then it reached point C by means of a fiscal policy action. Which of the following is correct?
A. Point C is a short-run equilibrium that could have been attained through a reduction in government spending, but in the long run the economy will end up at point B. B. Point C is both a short-run equilibrium and a long-run equilibrium that could have been attained through an increase in government spending. C. Point C is a long-run equilibrium that could have been attained through a tax increase, although reaching this point first required a short-run equilibrium at point B. D. Point C is a short-run equilibrium that could have been attained through a tax cut, but in the long run the economy will end up at point B.