A usury ceiling will be effective depending on
A. whether the usury rate is above 10 percent.
B. whether the usury rate is above 8 percent.
C. whether that rate is below what the equilibrium rate of interest would have been in a free market.
D. how well organized the lending institutions are.
Answer: C
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The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. Suppose that the government decides to introduce a pollution tax
What is the tax per vehicle mile that will achieve the efficient outcome? A) $2 B) $4 C) $6 D) $8
A production possibilities curve shows the various:
a. prices that can be charged for capital and consumption goods. b. combinations of prices and outputs that can be produced. c. combinations of goods the economy has the capacity to produce. d. combinations of resources and prices that the economy can produce.
What is the usual response of firm to an increase in the price of what they sell?
A. An increase in output B. An increase in hiring factors of production C. An increase in the profit level of the firm D. An increase in employment at the firm E. All of these responses are correct.
An example of a good that is excludable is:
A. a park. B. a river. C. a boat. D. clean air.