People with savings often deposit their funds in a commercial bank, rather than investing them directly with business enterprises, in order to
A. earn the highest possible return for taking on the riskiest investments.
B. avoid the problems associated with asymmetric information.
C. avoid the problems associated with financial intermediation.
D. All of these are correct.
Answer: B
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of cowboy hats is $50, how many hats will be produced?
A) 0 B) 1 C) 2 D) 4
When the price of ice cream falls, we would expect the quantity demanded of ice cream to rise, ceteris paribus
a. True b. False Indicate whether the statement is true or false
As the baby boom generation, born during 1946 through 1960, reaches retirement age during the 2011 through 2030 period, the number of workers per Social Security beneficiary is expected to
a. increase to five. b. remain constant at approximately seven. c. decline to approximately five. d. decline to approximately two.
The economic way of thinking will help you
A) make decisions in financing your home. B) analyze solutions to economic problems. C) make better decisions concerning your education. D) all of the above