Automated teller machines provided by financial intermediaries are an example of:
A. diseconomies of scale.
B. the ability of financial intermediaries to provide liquidity.
C. high transactions costs associated with financial intermediaries.
D. the ability of financial intermediaries to earn profits by raising transaction costs above the norm.
Answer: B
You might also like to view...
Which of the following is an example of marginal analysis?
a. a fast food restaurant that only serves lunch and dinner trying to determine if it should open for breakfast. b. a company looking at its total costs of production. c. a worker calculating his total income. d. an economist analyzing total output for the U.S. economy.
The market basket approach:
A. gives us a single number that represents how changing prices affect the typical consumer. B. gives us a list of what the typical consumer buys and the average price change of those goods. C. tells us how the prices of all goods and services in an economy change over time. D. tells us exactly how people change what they buy from year to year.
Which of the following explains the slope of the demand curve for labor?
a. the marginal productivity theory b. the law of diminishing marginal product c. the practice of featherbedding d. the result of monopsony
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q1, the result is a deadweight loss represented by area:
A. BEG. B. CBEFD. C. EGH. D. BEF.