An activity performed by commercial banks that is not performed by insurance companies is
A) functioning as financial intermediaries.
B) creating financial obligations against themselves.
C) accepting deposits and offering checking accounts.
D) allocating financial resources between borrowers and lenders.
Answer: C) accepting deposits and offering checking accounts.
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The formula for the computation of labor productivity is
A) nominal GDP/number of workers. B) real GDP/number of workers. C) nominal GDP/population. D) real GDP/population.
The manager of View Your World, a high-end window manufacturer, notices that the cost to purchase glass for their windows in the spot market has fallen. As a result of the change, which of the following is true?
A) The manager has less of an incentive to integrate backward. B) The manager has less of an incentive to integrate forward. C) The manager has more of an incentive to integrate forward. D) The manager has more of an incentive to integrate backward.
The order of Soviet dictator Joseph Stalin to farmers in the 1930s to produce capital equipment rather than food
a. was based on government support payments for agriculture. b. relied on foreign assistance. c. was an illustration of the capital formation method. d. was an illustration of the brute force method of breaking the poverty cycle, and it was a very successful policy. e. was an illustration of the brute force method of breaking the poverty cycle, and it meant starvation for millions of farmers.
The optimal use of resources is achieved if
a. price = average total cost (ATC) b. price = marginal cost c. price = marginal revenue d. price = total cost e. price = total revenue