All of the following are consequences of adverse selection on good firms EXCEPT
A) the cost of external financing increases.
B) firms need to rely more on internal funds.
C) firms need to rely more on accumulated profits.
D) firms will only be able to attain financing from the government.
D
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A market structure in which a small number of firms compete is called ________
A) a monopoly B) a small-number market C) an oligopoly D) monopolistic competition
What is the most common type of business?
A) partnership B) corporation C) sole proprietorship D) They are equally represented because of federal laws.
The inflation rate = ________
A) nominal GDP - real GDP B) growth rate in real GDP - growth rate in nominal GDP C) growth rate in real GDP + growth rate in nominal GDP D) nominal GDP รท real GDP E) none of the above
Economists believe that people respond in a predictable way to changes in costs and benefits. The term that best describes this phenomenon is
a. opportunity cost b. scarcity c. innovation d. marginal analysis e. other things equal (or ceteris paribus)