One result of asymmetric information in the market for bank loans is that
a. few loans are offered
b. few bad loans are made
c. more bad loans than good loans may be made
d. lenders benefit at the expense of borrowers
e. the interest on good loans will be higher than otherwise
C
Economics
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As the cost of operating ATM machines falls, the demand for bank tellers will decline
a. True b. False
Economics
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total cost for one photo frame to be
a. $5. b. $10. c. $15. d. $25.
Economics