Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. In response to this ordinance, Angus agrees to pay Dudley $225 each day to not call the police
Compared to the original scenario where there was no ordinance banning loud music, in this situation the size of the economic pie will A) shrink.
B) not change.
C) grow.
D) More information is needed to determine the size of the economic pie.
B
Economics
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__________ occurs because firms have an incentive to become riskier after their loans are funded
A) Moral hazard B) Adverse selection C) Manager-stockholder conflict D) Manager-lender conflict
Economics
Demand for a good will always rise when:
a. the price of a complementary good falls. b. the price of a substitute good falls. c. tastes change. d. incomes decrease. e. the price of the good falls.
Economics