The reduction in transactions costs brought about by financial intermediaries benefits
A) small savers, but not small borrowers.
B) small borrowers, but not small savers.
C) both small savers and small borrowers.
D) society through greater economic efficiency; small savers and borrowers do not gain directly.
C
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The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation?
A. Interest rates have increased. B. Net exports have increased. C. Wage rates have fallen. D. Business taxes have increased.
Free riding is possible if the good is nonexcludable
Indicate whether the statement is true or false
Why should an economy specialize and trade according to its marginal cost advantage or comparative advantage?
In the diagram below, profit is maximized at point 
A. C. B. D. C. B. D. A.