Why is it that financial intermediaries are so important in most economies?
What will be an ideal response?
Financial intermediaries provide a variety of services that enhance growth. These include pooling savings, providing liquidity, diversifying risk and collecting and processing information. As a result, they help facilitate the low cost allocation of capital to its most productive uses, thereby enhancing growth.
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Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $2.00. Tom's monthly income is
A. $40. B. $60. C. $80. D. $100.
State the Coase theorem
What will be an ideal response?
In a purely competitive market place, the firm's output will be determined by
A) where MR = MC. B) where MR = ?y/?N. C) where MP = ?y/?N. D) where MC = P.
Between 1929 and 1982, according to Edward Denison, approximately
a. one-fourth of the growth in output was due to the increase in the quantity of labor. b. one-third of the growth in output came from an increase in the quantity of labor. c. forty-five percent of the growth in output was credited to an increase in the quantity of labor. d. ten percent of the growth in output was responsible for the increase in the quantity of labor.