Which of the following is NOT a description of indirect finance?
A) You take out a student loan from your bank. B) You borrow $500 from your best friend.
C) You buy shares in a mutual fund. D) An insurance company lends funds to IBM.
B
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Refer to Table 12-2. How many pounds of apples should Margie sell to maximize her profit?
A) 300 pounds B) 400 pounds C) This cannot be determined without knowing Margie's total or marginal production costs. D) This can be determined only when all of the values for market price, total revenue, average revenue and marginal revenue are given.
If the financial innovations such as ATM machines make money demand less elastic than it was before, then
a. the LM curve will become steeper. b. the LM curve will become flatter. c. both the IS and LM curves will become flatter. d. the LM curve will shift to the left.
Firms have incentive to enter a monopolistically competitive market if:
A. positive profits are being earned and the price is below MC. B. zero profits are being made and they can duplicate the product exactly. C. positive profits are being earned and they can create a similar product. D. zero profits are being made and they can create a similar product.
A financial services company may hire a professional athlete as a spokesperson because:
A. the athlete is more informed about financial services than the general public. B. this can act as a credible signal to consumers that the company has a high quality product they are willing to spend money advertising. C. does not serve as a credible signal to consumers, since athletes are not often financial service experts. D. can signal to customers that the services are worse than they actually are.