Banks
a. play a role in creating an asset that people can use as a medium of exchange.
b. are financial intermediaries, but mutual funds are not financial intermediaries.
c. are financial markets, as are bond markets.
d. All of the above are correct.
a
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Managers at Concord Construction have determined that the firm’s revenues do not cover the firm’s average variable costs. Which term describes the situation at Concord Construction?
a. The shutdown point b. Allocative inefficiency c. Diseconomies of scale d. The price taking point
A good example of a merit good is
a. community colleges b. national security c. lighthouse d. sewer systems e. traffic lights
The market power in racing goes to the
A. drivers. B. fans. C. owners of the independent tracks. D. owners of the respective racing series.
With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A. If a good's price goes down, then demand for the good will decrease. B. If a good's price goes down, then quantity demanded will increase. C. If price rises and quantity demanded decreases, then the demand curve will shift to the left. D. If demand increases, then the demand curve will shift to the left.