The financial institutions in our banking system are all in the business of transferring funds from savers to investors. This process is known as
A) financial intermediation. B) money laundering.
C) parachuting. D) lobbying.
A
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Refer to Common Property II. If access cannot be prohibited, then users of the common property receive a surplus of
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. zero.
b. area I.
c. area F + G + H + I.
d. area A + C + F + I.
A private good
A. Experiences free riders. B. Is provided most efficiently by the government. C. Is consumed by one person and excludes consumption by others. D. Results in market failure when provided in markets characterized by laissez faire.
In Table 9.3, Market 2 would be in equilibrium if buyers believed plums account for:
A. about 16.67% of the market. B. about 33.33% of the market. C. about 66.67% of the market. D. about 88.89% of the market.
Public goods represent ________ because by their very nature they are nonexcludable and nonrival which makes it difficult for the private sector to supply them profitably.
A. a negative externality B. a positive externality C. efficient production D. a market failure