When property rights are well defined and inexpensive to enforce, ________
A) collateral is an efficient solution to asymmetric information problems
B) little or no collateral is needed to secure a loan
C) banks become less dominant among intermediaries
D) poor borrowers are at no disadvantage relative to wealthy borrowers
A
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Which of the following is TRUE of the relationship between U.S. trade deficits and federal government budget deficits?
A) Increases in the budget deficit are always associated with reductions in the trade deficit. B) Increases in the budget deficit are always associated with increases in the trade deficit. C) Increases in the budget deficit tend to be associated with increases in the trade deficit. D) Increases in the budget deficit tend to be associated with reductions in the trade deficit.
Suppose a market produces 5,000 tons of wheat. At this quantity, the marginal cost exceeds the marginal benefit. This outcome could be the result of
A) a quantity regulation limiting the amount that can be produced. B) a monopoly. C) a subsidy. D) an external benefit. E) producing a public good.