In the long run, a tax placed on a perfectly competitive industry should
A. increase the number of firms.
B. not affect the number of firms.
C. decrease the number of firms.
D. One cannot tell
Answer: C
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Which of the following is not characteristic of successful microfinance organizations:
a. close, continuous contact between borrower and lender b. teams of borrowers who put pressure on each other to repay on time c. relatively small loans for short-term projects d. numerous levels of approval required to ensure that loans are sound e. all of the above characterize successful microfinance organizations
In banking-oriented systems, handling of the manager-stockholder conflict in large firms is through
A) rating agencies. B) the potential for takeovers. C) management ownership of the firm. D) bank ownership of the firm.