Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D1 to D0, shown in the following diagram?
a) A decrease in investment tax credits.
b) A technological advancement that increases productivity.
c) An increase in business taxes.
d) The expansion of business regulations.
Ans: b) A technological advancement that increases productivity.
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If the price of business broadband is greater than that of residential broadband, all else equal
A) business has greater price elasticity than residential. B) residential has greater price elasticity than business. C) both have inelastic demand curves. D) generally speaking, broadband is equally priced.
Which of the following is a characteristic of capitalism?
a. Equality of income. b. Government decision-making is preferred to decentralized decision-making. c. Market determination of prices and quantity. d. Government ownership of all capital.