Savers may prefer to use financial intermediaries rather than lending directly to borrowers because financial intermediaries:
A. increase the risk of lending.
B. offer higher rates of return than available elsewhere.
C. have a monopoly on lending.
D. reduce the cost of gathering information about borrowers.
Answer: D
Economics
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Monopolistically competitive firms can differentiate their products
A) by producing where marginal revenue equals marginal cost. B) through marketing. C) by equating price and average total cost. D) by producing at minimum efficient scale.
Economics
If an economy is operating at a point inside the production possibilities curve,
a. its resources are not being used efficiently. b. the curve will begin to shift inward. c. the curve will begin to shift outward. d. This is a trick question because an economy cannot produce at a point inside the curve.
Economics