Author Question: An individual firm is insolvent when ________. A) its assets exceed the value of its liabilities ... (Read 71 times)

Destiiny22

  • Hero Member
  • *****
  • Posts: 557
An individual firm is insolvent when ________.
 
  A) its assets exceed the value of its liabilities
  B) its average costs per unit are greater than its marginal cost
  C) its average costs per unit are less than its marginal cost
  D) its liabilities exceed the value of its assets

Question 2

An increase in the real interest rate is an example of a
 
  A) pure substitution effect.
  B) substitution effect and a positive income effect.
  C) substitution effect and a negative income effect.
  D) substitution effect and an income effect whose sign depends on whether the consumer is initially a borrower or a lender.



softEldritch

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

D

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

For a complete list of videos, visit our video library