Standard & Poor's sells information to investors; this is their primary business. Is this an example of a financial intermediary? Explain.
What will be an ideal response?
No. A financial intermediary is involved indirectly in a financial transaction. It matches up the ultimate lenders (savers) with the ultimate spenders (borrowers). The funds flow through the intermediary which is acting as a "middleman." That is not the case with Standard & Poor's.
Economics
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What happens in the long run if firms in a monopolistically competitive industry are earning positive economic profits? Explain
What will be an ideal response?
Economics
An agricultural economist reports that corn prices are very high this year and that corn growers are earning substantial profits. He concludes that government action is needed to direct more farmers to grow corn. Is such action necessary? Why or why not?
Economics