Figure 11-1 ​

question 45

Multiple Choice

Figure 11-1
​

-Refer to Figure 11-1. For which two boxes is it the case that externalities arise because something of value has no price attached to it?

• A)Box A and Box B
• B)Box A and Box C
• C)Box B and Box D
• D)Box C and Box D

Analyze how technology and operational decisions, like bitcoin mining, reflect economic principles of cost minimization.

Identify conditions necessary for competition and its role in economic efficiency.

Compare and contrast economic systems, focusing on their theoretical foundations and practical implications.

Understand the impact of demographic trends on economic development in DVCs and IACs.

---

Definitions:

Pledged

Assets or collateral that a borrower offers to a lender to secure a loan, which the lender may seize if the loan is not repaid.

Default Risk

The risk of loss to a lender from the borrower’s failure to pay the full amount due including interest and principal.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Bank Loan

A sum of money lent by a bank to a borrower at an interest rate, which is to be repaid with interest according to the terms of the loan agreement.