Scenario 4-1 In a Given Year, Country a Exported $12 Million Worth

question 18

Multiple Choice

Scenario 4-1
In a given year, country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
-Financial intermediaries are best described as:

• A)informal institutions that provide funds to the government to manage budget deficits.
• B)institutions that accept deposits and make loans.
• C)institutions that control the money supply in the economy.
• D)institutions that provide financial aid to foreign countries.
• E)individuals who manage other's investment portfolios.

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical.

Monopsony Labor Market

is a market structure where a single buyer (employer) substantially controls the market as the major purchaser of labor, influencing wages and employment conditions.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence the market price.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing an extra unit of a resource.