A loan is said to be productive if it
a. increases the purchasing power of the borrower.
b. increases the present utility of the borrower’s possessions.
c. ultimately costs less to repay than it was worth when borrowed, due to inflation.
d. increases the borrower’s total output and profits.
d. increases the borrower’s total output and profits.
You might also like to view...
As a country that has a bowed-out production possibilities frontier produces more of one good, the opportunity cost of a unit of that good ________
A) might increase or decrease B) remains the same C) increases D) decreases
A natural monopoly exists if: a. several former competitors merge to become the only producer in the industry
b. average cost of production is lowest when only one firm produces the entire industry output. c. one firm controls the supply of an essential input used by the industry. d. a firm has a patent or copyright.
If (X ? IM) < 0, then capital inflows
a. will be zero. b. will be greater than zero. c. will be less than zero. d. can be zero, positive, or negative.
Answer the following statement(s) true (T) or false (F)
1. The price elasticity of supply measures the relative change in the quantity consumers demand that results from a change in price. 2. The price elasticity of supply is defined as the percentage change in the quantity supplied multiplied by the percentage change in price. 3. In a condition of perfectly inelastic supply, an increase in price will not change the quantity supplied. 4. In a condition of perfectly elastic supply, the elasticity of supply is 100. 5. Supply is usually more elastic in the short run than in the long run.