Studies of the major developed countries show that when businesses go looking for funds to finance their activities they usually obtain these funds from
A) government agencies.
B) equities markets.
C) financial intermediaries.
D) bond markets.
C
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Which of the following would cause a fall in the price of video tape rentals?
a. A new nationwide video rental chain opens. b. Movie theaters raise their prices. c. The royalties paid to movie actors increase. d. The price of video cassette recorders (VCRs) falls.
Which of the statements below does not describe a demand curve that is unit elastic?
a. The percentage change in the quantity demanded = percentage change in product price. b. An increase in product price will not change total revenue. c. The price elasticity of demand equals one. d. A change in price does not change quantity demanded. e. A decrease in product price will not change total revenue.
When the opportunity cost of producing carrots increases as more carrots are produced, then
a. no more carrots will be produced b. resources are equally suited to the production of carrots and to other goods c. the production possibilities curve shifts inward d. the production possibilities curve shifts outward e. the law of increasing costs is in effect
Answer the following statement(s) true (T) or false (F)
1. The law of demand and the law of diminishing marginal utility are related. 2. Most economists find it acceptable to make utility comparisons between different people. 3. The income effect occurs when people value their personal property above the property of others. 4. The law of diminishing marginal utility explains why price and quantity demanded have a negative relationship. 5. Economists measure utility in utils.