Refer to the below table and information. If changes in tax laws make households save more by $140 billion at each interest rate, then the new equilibrium interest rate would be:
The schedule shows various interest rates, the associated quantity demanded of loanable funds, and the quantity supplied of loanable funds in billions of dollars at those interest rates.
A. 2 percent
B. 4 percent
C. 8 percent
D. 10 percent
B. 4 percent
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Which of the following statements is true?
A) Rational economic agents maximize more than just monetary income. B) It is not necessary to consider the risks of a particular alternative while making an optimal decision. C) An individual does not require information to make optimal decisions. D) The principle of optimization is only accurate when it comes to making monetary decisions.
In early 2007, Pioneer and JVC, two Japanese electronics firms, each announced that their profits were going to be lower than expected because they both had to cut prices for LCD and plasma television sets
Which of the following could explain why these firms did not simply raise their prices and increase their profits? A) The firms are still making profits, just not as high as expected so there is room to lower prices until one can force the other out of business. B) The move to cut prices is probably just a temporary one to gain market share. In the long run the firms will raise prices and be able to increase their profits. C) Most likely, intense competition between these two major producers probably pushed prices down. Thereafter, each feared that it would lose its customers to the other if it raised its prices. D) In perfect competition, prices are determined by the market and firms will keep lowering prices until there are no profits to be earned.
All of the following result from price floors in agriculture EXCEPT
A. lower prices to consumers for agricultural products that have price floors. B. higher prices to consumers for agricultural products that have price floors. C. surpluses of agricultural products that have price floors. D. governmental bureaucracy.
Which of the following activities could be prohibited by the Endangered Species Act?
A) Building a fence that would impact the breeding ground of an endangered rodent. B) The hunting of a federally listed endangered bird. C) Draining water from a pond where an endangered plant lives. D) All of the above