Answer:
The correct answer is option A.
Explanation:
A production possibility curve shows the different bundles of maximum possible two goods that can be produced using the given resources. The production possibility curve is concave to the origin.
This shape of the curve is because of opportunity cost. We know that to increase the production of one commodity we need to sacrifice production of its alternative.
The resources can not be perfectly substituted and the opportunity cost goes on increasing with the increase in output, that's why the production possibility curve is bowed out or concave to the origin.
Answer:
True
Explanation:
This is the value of stock or share that was set by the owners of a corporation at the point of registration of the company. It is the price that is stated in the corporation's article of association and also in the share certificate. The par value of a share has no relationship with the market value as they can be far apart.
The par value is a value specified by law for the protection of the people who might want to extend credit to the corporation.
Answer:
a natural monopoly
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
A monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
On a related note, a natural monopoly is a market that runs most efficiently when all of the output is supplied by one large business firm. Thus, a business firm is considered to be a natural monopoly if it's capable of producing the total output of the market at a lower cost than two or more business firms could.
Some examples of natural monopoly are the United States Postal Service, electricity grid, water supply, gas network, sewer services, energy distributors, railway service, etc.
Answer:
the options are missing, so I looked for them:
a. The buying of government bonds leads to lower interest rates, thereby reducing private investment.
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
c. The selling of government bonds leads to lower interest rates, thereby reducing private investment.
d. The buying of government bonds leads to higher interest rates, thereby reducing private investment.
the answer is:
b. The selling of government bonds leads to higher interest rates, thereby reducing private investment.
Explanation:
The crowding out effect happens when the government increases its spending level in order to engage in an expansionary fiscal policy but someone needs to pay for this extra spending. In order for the government to finance their spending, they have to choose to either increase taxes or issue more debt. When they issue more debt, they end up decreasing private investment since money that could be used by private companies is used by the government instead.
Answer:
The correct answer is letter "D": short-term financing.
Explanation:
Short-term financing allows companies to obtain capital for their <em>day-to-day operations</em>. The funds obtained are typically used for the transactions companies require during one period -one year, but the term for payment tends to be within six (6) to twenty-four (24) months. Under this scenario, the main purpose of firms is to keep their businesses up and running and obtain profits enough for the payment of the loan and reinvestment in the company.
