If the government wants to borrow money to build new highways; then the

A) interest rate will be higher.
B) quantity of funds available in the market will increase.
C) private investment will decrease.
D) All of the above.


D

Economics

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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. At an output of 10,000 units

A) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently low. B) the marginal cost of iced tea is greater than the marginal benefit; therefore, output is inefficiently low. C) producers should lower the price to $1 in order to sell the quantity demanded of 10,000. D) the marginal benefit of iced tea is greater than the marginal cost; therefore, output is inefficiently high.

Economics

Business cycles will occur if either of the two theories below characterizes the behavior of the economy:

A) the classical or the Keynesian theories of aggregate demand. B) the classical or the real balance theory. C) deflation impotence or rigid nominal wages. D) A and C.

Economics

Convenience stores with gas stations tend to sell an essentially identical variety of products and services. Yet this is generally considered to be a monopolistically competitive industry selling differentiated products

How can this be considered a differentiated product?

Economics

A horizontal demand curve is perfectly elastic

a. True b. False Indicate whether the statement is true or false

Economics