10-38An Agency That Extends Loans to Rural Areas of Farms,houses,and

question 12

Multiple Choice

10-38.An agency that extends loans to rural areas of farms,houses,and community facilities is:

• A) Federal Agricultural Mortgage Corporation
• B) Farmers Home Administration
• C) Financing Corporation (FICO)
• D) Federal Financing bank (FFB)

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Definitions:

X-Inefficiency

The difference between efficient behavior of businesses in a competitive market and their actual behavior due to a lack of competitive pressure.

Pure Competition

A market structure characterized by an unlimited number of small sellers, identical products, and free entry and exit, leading to perfect competition.

Oligopoly

A market structure in which a few companies dominate the industry, having significant control over prices and supply.

Monopolistic Competition

A trading environment where countless firms peddle products that bear resemblance but are not exact duplicates, offering them a fragment of control in the marketplace.