A package of nontraded financial instruments can be transformed into a traded financial instrument through the process of

Lolita wants to purchase a rather bland-looking shopping center built in the 1970s, tear it down, and construct an architecturally-stimulating office building that will confer $750,000 of benefits to society. In its current state, the shopping center is worth $900,000. Lolita goes to the city council with her proposal and tells the council members that the new office building will beautify the city and increase property-tax revenues. If the city council agrees to use eminent domain to allow Lolita to proceed with her project, society as a whole will

A) be made richer since property-tax revenues will increase. B) be made richer since the area will be more aesthetically beautiful. C) be made poorer since the project confers benefits that are lower than the current value of the shopping center. D) not be affected since the project only encompasses one small parcel of land.

Liasner, a heavy machine manufacturer, recently introduced a new lathe machine that consumes lesser electricity than conventional lathe machines. Since baseball bats are produced using lathe machines, which of the following will be an impact of Liasner's machine on the supply of baseball bats? a. The quantity supplied of baseball bats will increase. b. The quantity supplied of baseball bats

will decrease. c. The supply of baseball bats will increase. d. The supply of baseball bats will decrease.