What will happen if the institutions in an economy transform from inclusive to extractive?
A) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will decrease.
B) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will decrease.
C) The return-to-entrepreneurship schedule will shift leftward and the opportunity cost to entrepreneurship will increase.
D) The return-to-entrepreneurship schedule will shift rightward and the opportunity cost to entrepreneurship will increase.
C
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To help offset the costs from loan defaults, the First National Bank of Gotham decides to increase the interest rate it charges on its business loans
As a result of this increase in the interest rate, the creditworthiness of Gotham's loan applicants is likely to A) improve. B) deteriorate. C) be unchanged. D) be unchanged, unless the economy enters a recession at the same time as the interest rate is increased.
The major problem with the Sherman Antitrust Act of 1890 was that
(a) it was struck down by the Supreme Court. (b) the government lacked the tools to enforce it. (c) its language was too vague to be applied the ways desired by Congress. (d) businesses found ways to use the Act clearly in their favor.
For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
A) real interest rate. B) nominal interest rate. C) prime interest rate. D) opportunity cost of capital.
According to the text, grass mowing, T-shirt production, and potato farming are examples of firms
a. that regularly advertise to increase market share b. whose markets are highly seasonal c. with high production differentiation d. with high brand loyalty e. with no barriers to entry