Financial intermediaries reduce the problems in lending associated with information asymmetries by all of the following except:
A. monitoring loan recipients to be sure the funds are used properly.
B. charging interest rates high enough to discourage undesirable borrowers.
C. collecting and processing standardized information.
D. screening applicants to be sure they are creditworthy.
Answer: B
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The above figure shows the demand curve for movie rentals from Redbox. If Redbox raised its price from $2.50 to $3.00, between these two prices the price elasticity of demand equals
A) 1.2. B) 0.8. C) 2.0. D) 0.5.
A change in nominal GDP sums up changes in
A) prices alone. B) physical production alone. C) physical production and hours of production time. D) physical production and prices.
Each point along the market demand curve shows
a. the quantity of the good that firms would be willing and able to supply at a specific price b. the relationship between the price of the good and total quantity demanded at a series of prices c. the opportunity cost of supplying a given quantity of goods to the market d. the quantity of the good that consumers would be willing and able to purchase at a specific price e. how population changes affect the quantity demanded at a specific price
The sale of __________ goods is omitted from current GDP because __________
A) intermediate goods; these goods do not constitute production B) used goods; these goods were counted in an earlier year C) illegal; these goods do not constitute economic value D) b and c E) a, b, and c