The Small Business Administration

question 104

Multiple Choice

The Small Business Administration:

• A) lends exclusively to small business investment companies that in turn lend to small businesses
• B) makes only working capital loans
• C) lends to businesses with reasonable prospects of repayment but which cannot obtain credit through private channels
• D) makes loans at lower than market rates

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Definitions:

Very Inelastic

Describes a situation where the demand or supply for a good or service is minimally responsive to changes in price.

Very Elastic

Refers to a situation in which the demand or supply for a product changes significantly in response to price changes, indicating high sensitivity.

Elastic Demand Curve

A demand curve characterized by a high sensitivity of quantity demanded to changes in price, indicating that a small price change results in a large change in quantity demanded.

Heating Oil

A low viscosity, liquid petroleum product used as a fuel for furnaces or boilers in buildings.