Decentralized market-based financial systems improve the allocation of saving by:
A. eliminating the need for commercial banks or other financial intermediaries.
B. ensuring capital gains exceed dividend payments.
C. providing information and risk-sharing services.
D. matching net capital inflows to net capital outflows.
Answer: C
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The price of pie increases. Some people who purchased pie before the price increase no longer purchase pie. This is
A) a positive externality. B) a negative externality. C) a positive externality for some consumers and a negative externality for others. D) not an externality.
A fall in demand for a commodity in a perfectly competitive market will shift the long-run supply curve to the right
Indicate whether the statement is true or false
Compared to the market demand curve, a demand curve facing a monopolistically competitive firm would be
a. more elastic. b. vertical. c. horizontal. d. the same as the market demand curve. e. less elastic.
A dominant strategy is one that gives a player in a game a bigger payoff than the other player receives
a. True b. False Indicate whether the statement is true or false