Multiple Choice
All else constant, an increase in a firm's cost of debt will most likely:
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
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To be considered part of a market, an individual must:
A
have government approval to participate
B
consume the good or service regularly
C
be willing and able to buy or sell a good or service
D
own a business within the market
Verified step by step guidance1
Understand the definition of a market in microeconomics: a market consists of buyers and sellers who are willing and able to exchange goods or services.
Recognize that government approval or owning a business is not a necessary condition to be part of a market; rather, participation depends on willingness and ability to trade.
Identify that consuming a good or service regularly does not automatically make someone part of the market; they must be willing and able to buy or sell.
Focus on the key criteria: willingness (desire to participate) and ability (having the resources or means) to buy or sell a good or service.
Conclude that the correct condition for being part of a market is to be willing and able to buy or sell a good or service.
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