A determinant of the supply of loanable funds is:
A. investors' confidence.
B. expected profit on an investment.
C. current economic conditions.
D. All of these are determinants of the supply of loanable funds.
Answer: C
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The price in a contestable market is similar to that in a perfectly competitive market because
A) there are barriers to entry. B) there are no barriers to entry. C) there are many firms in the market. D) the firm can earn an economic profit in the long run.
Domestic aggregate surplus:
A. is the sum of consumer surplus, deadweight loss and government revenue. B. is the sum of domestic producer surplus and government revenue. C. is the sum of domestic producer surplus and consumer surplus. D. is the sum of consumer surplus, domestic producer surplus and government revenue.
What is the present value of $100 one-year from now at an interest rate of 6%?
A. $3 B. $97.09 C. $94.34 D. $107
Freely functioning markets in the real world always result in efficient allocations of resources.
Answer the following statement true (T) or false (F)