A small country is an international borrower and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international borrowing ________
A) does not change; decreases
B) does not change; does not change
C) does not change; increases
D) increases; does not change
A
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What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery?
A) Supply will decrease, but this will not shift the demand curve. B) Demand will decrease and supply will increase. C) Demand and supply will both decrease. D) Demand will decrease, but this will not shift the supply curve.
Entry to a perfectly competitive market is the long-run process of reducing production in response to a sustained pattern of losses
a. True b. False Indicate whether the statement is true or false
When regulators use a marginal-cost pricing strategy to regulate a natural monopoly, the regulated monopoly
a. will experience a loss. b. will experience a price below average total cost. c. may rely on a government subsidy to remain in business. d. All of the above are correct.
If the annual interest rate is i, the present value of $X to be received at the end of each future year forever is:
a. $X/(1 + i) b. $X/i c. $X/(1 + i) n d. $X/i n e. $X n /i n