The demand curve for loanable funds is downward sloping because:
a. people save more at higher interest rates
b. more investments are profitable at low interest rates than at high interest rates.
c. future income is more valuable now at higher interest rates than at lower interest rates.
d. usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.
b
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A change in technology that shifts the firm's total product curve upward without changing the quantity of capital used
A) shifts the average total cost curve upward. B) shifts the average total cost curve downward. C) does not change the cost curves. D) shifts the marginal cost curve upward.
Refer to the figure above. If this country is labor abundant, then according to the HO theory good X should be ________ intensive
A) capital B) labor C) both capital and labor D) Can't tell without more information
Seat belts are not cost-effective highway safety devices because so many of them must be installed and go unused that there cost is high
Indicate whether the statement is true or false
Which of the following claims is true at each point along a price-consumption curve?
A) Utility is maximized but income is not all spent. B) All income is spent, but utility is not maximized. C) Utility is maximized, and all income is spent. D) The level of utility is constant.