In a secondary loan market, _____
a. loans are made to the borrowers
b. loans are sold to other banks or financial institutions
c. the rate of interest is higher than a primary loan market
d. the rate of interest is lower than a primary loan market
b
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The imposition of tariffs on imports results in deadweight (triangle) losses. These are
A) production and consumption distortion effects. B) redistribution effects. C) revenue effects D) efficiency effects. E) distortion of incentives.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss due to the monopsony in the coal miners market?
A. $27,778 B. $13,889 C. $41,667 D. $21,667
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
a. the unemployment insurance premium that the firm pays to the state of Missouri that is calculated based on the number of worker-hours that the firm uses b. the cost of the steel that is used in producing automobiles c. the cost of the electricity of running the machines on the factory floor d. All of the above are correct.
If, for a given disposable income level, the disposable income line lies above the consumption curve, saving:
A. equals consumption. B. is greater than zero. C. is less than zero. D. is equal to zero.