If the quantity of loanable funds demanded exceeds the quantity of loanable funds supplied,
a. there is a surplus so interest rates will rise.
b. there is a surplus so interest rates will fall.
c. there is a shortage so interest rates will rise.
d. there is a shortage so interest rates will fall.
c
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Free riders are not a problem in the market for a private good because
A) non-payers can be excluded from consuming the good. B) the good is a rival good. C) the good can be produced only at a positive marginal cost. D) the free rider will not get caught.
Refer to Figure 3-5. At a price of $0,
A) there is a shortage of 0 units. B) there is a surplus of 8 units. C) there is a surplus of 0 units. D) there is a shortage of 8 units.
In the long run, firms will enter a perfectly competitive market if the existing firms are making:
A. a profit. B. negative profits. C. zero profits. D. Any of these could be true.
The stand-alone selling price of a good or service may be highly uncertain because the seller
A. has not previously sold the good or service. B. sells the product or service in various combinations with other goods or services. C. provides the same good or service to different customers at substantially different prices