Economies of scale enable financial institutions to
A) reduce transactions costs.
B) avoid the asymmetric information problem.
C) avoid adverse selection problems.
D) reduce moral hazard.
A
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When a firm’s earnings rise, its stock prices will tend to fall.
Answer the following statement true (T) or false (F)
Of the following countries, which has the lowest level of income inequality?
A. Greece B. Japan C. Mexico D. Slovenia
Improving the education level of the labor force will
A. shift the production possibilities curve inward. B. not shift the production possibilities curve since the total size of the labor force has not been changed. C. shift the production possibilities curve outward. D. cause a movement from a point inside the production possibilities curve to a point on the curve.
When a firm obtains market power through barriers to entry created not by the firm, but by the government, it is referred to as:
A) legal market power. B) regulated market power. C) firm-biased market power. D) differentiated market power.