It Is Generally Agreed That

question 7

Multiple Choice

It is generally agreed that

• A) the financial system would be more efficient if intermediaries were eliminated.
• B) small- and medium-sized firms benefit by the actions of intermediaries.
• C) the addition of intermediaries adds to transactions costs.
• D) intermediaries should not seek to profit from reducing transactions costs.

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Definitions:

Labor Deepening Technology

Refers to investments in technology that increase the productivity of each worker.

Standard Of Living

A measure of wealth, comfort, material goods, and necessities available to a person or community.

Necessities Of Life

Basic needs required for maintaining a healthy existence, such as food, water, shelter, and clothing.

Labor Productivity

The amount of goods and services produced per hour of labor, serving as an important indicator of economic efficiency and competitiveness.