A company's credit risk can be high even if it is solvent and well-capitalized, if there is:
a. Actually, it is impossible for a solvent, well-capitalized company to have a high credit risk.
b. Insufficient cash earnings and/or insufficient access to the credit markets.
c. High expected inflation.
d. Political and central bank instability in the nation(s) where it operates.
e. A high real, risk-free interest rate.
.B
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After firm A producing one good acquired another firm B producing another good, it lowered the prices for the bundle of goods. One can conclude that the goods were
a. substitutes b. complements c. not related d. None of the above
When European markets refused to allow U.S. beef to be imported because U.S. cows had been fed government-approved hormones, this was an example of
a. a tariff b. a quota c. free trade d. a nontariff barrier e. economic efficiency