Financial intermediaries reduce the costs of negotiation by
A) investing in a large number of projects with independent returns.
B) gaining expertise in evaluating and monitoring investments.
C) investing in a small number of projects with independent returns.
D) pooling funds.
D
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Which of the following participants in the working of a firm are referred to as residual claimants?
A) workers B) managers C) entrepreneurs D) all of the above
If the price level increased from 120 to 144, then what was the inflation rate?
a. 24 percent. b. 25 percent. c. 20 percent. d. 17 percent.
(Consider This) Which of the following best explains why total compensation for U.S. workers has increased significantly over the past several decades, but take-home pay by U.S. workers has increased by much less?
A. An increased share of total compensation has gone to provide health insurance to workers. B. The share of total compensation going to retirement accounts has increased relative to all other components of compensation. C. Total compensation is measured in current dollar terms; take-home pay is measured in inflation-adjusted dollars. D. Workers are receiving a much larger share of total compensation in the form of goods and services produced by the firms that employ them.
If a tax is placed on perfectly competitive firms that impose external costs on society, the firm's marginal cost curve will shift ________ and the industry supply curve will shift to the ________.
A. up; left B. down; right C. down; left D. up; right