The demand curve for loanable funds slopes downward because of diminishing returns
Indicate whether the statement is true or false
T
You might also like to view...
If the government required car makers to install more costly and effective emission control devices on cars, it will lead to:
a. a higher price of cars and a larger quantity of cars sold. b. a higher price of cars and a smaller quantity of cars sold. c. a lower price of cars and a larger quantity of cars sold. d. a lower price of cars and a smaller quantity of cars sold.
Once decision makers fully adjust to an increase in the general price level,
a. the actual rate of unemployment will exceed the natural rate of unemployment. b. the actual rate of unemployment will be less than the natural rate of unemployment. c. the rate of output will exceed the economy's long-run capacity. d. output will return to the full-employment level.
When we focus on the firm as a supplier of a good or a service, we assume that the firm is a profit maximizer. When we focus on the firm as a demander of labor, we assume that the firm's objective is to
a. minimize wages. b. minimize variable costs. c. maximize the number of workers hired. d. maximize profit.
A farm must decide whether or not to purchase a new tractor. The tractor will reduce costs by $2,000 in the first year, $2,500 in the second, and $3,000 in the third and final year of usefulness. The tractor costs $9,000 today, while the above cost savings will be realized at the end of each year. If the interest rate is 7 percent, what is the net present value of purchasing the tractor?
A. $6,764 B. $18,362 C. $9,362 D. None of the statements associated with this question are correct.