With dollarization adopted by a country, the "seigniorage profit" from issuing currency in the country goes to a foreign government.
Answer the following statement true (T) or false (F)
True
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An initial public offering
A. Increases the percentage of the company owned by the management and original entrepreneurs. B. Indicates the demand for a company's new product. C. Allows a company to raise money without increasing debt. D. Allows a company to borrow funds for investment and growth.
A general rise in prices is known as
a. fixed incomes b. inflation c. capitalism d. voluntary exchange
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 16.4Table 16.4 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If Firm B would like to purchase one permit to be able to discharge 9 tons of sulfur dioxide, what is Firm B's willingness to pay?
A. $2,000 B. $3,000 C. $4,000 D. $5,000
Related to the Economics in Practice on page 267: When trying to determine the price of a new product, firms sometimes price the product close to the prices of similar products in the market. Firms call this approach
A. price rationing. B. benchmark pricing. C. focus group pricing. D. test market pricing.