The demand for borrowed funds is
a. directly related to the interest rate.
b. inversely related to the growth in gross domestic product.
c. a derived demand.
d. leads to derived demand for capital goods.
c
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Efficiency involves:
a. producing only one out of many possible commodities. b. producing output using the least amount of labor. c. producing as far inside the production possibilities frontier as possible. d. getting the maximum possible output from available resources. e. producing output using the least amount of capital.
The IS curve will shift to the right if:
a. the government deficit decreases. b. consumer confidence decreases. c. the MPC decreases. d. taxes decrease. e. the money supply increases.
Cities included all of the following economies of scale except
(a) Transportation (b) Sanitation (c) Crime (d) Education
The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant:
a. the greater the change in output. b. the more sharply curved are the firm's isoquants. c. the flatter are the firm's isoquants. d. the larger the quantity of labor employed.