The commercial paper market was an important ingredient of the Great Recession because:
a. It is the market on which mortgages are financed, and, due to the Great Recession, this market dried up.
b. It is the market on which many companies finance their daily working capital needs and, due to the Great Recession, this market dried up.
c. The commercial paper market was the only financing source open to companies during the great recession.
d. All of the above.
.B
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An improvement in production technology will
A. shift the demand curve to the left. B. shift the supply curve to the left. C. shift the supply curve to the right. D. increase equilibrium price.
McDonald's and its major competitors compete based:
A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive.
The Coase theorem says that, if the appropriate property right is assigned to ____, an efficient solution to an externality problem will be achieved
a. the party causing the externality b. the victim of the externality c. the party that can avoid the externality at the higher cost d. either one of the parties involved
Which of the following conditions is most essential if a firm is going to earn long-run economic profits?
a. an inelastic market demand for the product b. a small number of firms, even though competitors are free to enter the industry c. a differentiated product d. restrictions that limit the entry of potential competitors into the industry