Which of the following statements is correct about creating money?

a. Insurance companies can literally create money through the process of making loans.
b. The banking system can literally create money through the process of making loans.
c. The banking system cannot literally create money through the process of making loans.
d. Insurance companies cannot literally create money through the process of making loans.


b. The banking system can literally create money through the process of making loans.

Economics

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Why does the presence of negative externalities in the production of a good lead to an overproduction of the good?

What will be an ideal response?

Economics

Which of the following resources will a producer demand another unit of so long as the additional unit's marginal revenue exceeds its marginal cost?

a. labor b. capital c. natural resources d. entrepreneurial ability e. All of the answers are correct.

Economics

Pollution is an example of a negative externality

a. True b. False Indicate whether the statement is true or false

Economics

Which of the following is not a factor of production?

A. Money B. Labor C. Capital D. Entrepreneur

Economics