If markets are perfectly competitive, then the production of goods
A) will use the least costly combination of resources.
B) will occur at an average total cost value that is above the minimum.
C) will require government intervention.
D) will always lead to business failures.
A
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A recent purchaser of a bond that agrees to pay an annual nominal amount would hope that interest rates do not rise
Indicate whether the statement is true or false
What are some of the solutions for a hold-up problem?
a. Mergers b. Contracts c. Exchange of ‘hostages' d. All the above
The determinants of investment include the
a. level of technology, the interest rate, expectations of future economic growth, and the level of income b. level of technology, the interest rate, expectations of future economic growth, and the capacity utilization rate c. level of technology, the interest rate, the capacity utilization rate, and the level of income d. level of technology, the capacity utilization rate, expectations of future economic growth, and the level of income e. capacity utilization rate, expectations of future economic growth, the interest rate, and the level of income
What was the original stated purpose of Fannie Mae and Freddie Mac?
a. to allow the government to extend loans directly to low-income and minority households b. to help provide liquidity in the secondary mortgage markets c. to operate as non-profit entities that would provide competition for for-profit mortgage companies d. to take on mortgages going into default in order to prevent them from going into foreclosure