Appendix: The Identification Problem in the development of a demand function is a result of:
a. the variance of the demand elasticity
b. the consistency of quantity demanded at any given point
c. the negative slope of the demand function
d. the simultaneous relationship between the demand and supply functions
e. none of the above
d
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All of the following are sources of loanable funds EXCEPT
A) business investment. B) private saving. C) government budget surplus. D) international borrowing.
The confidence problem of the Bretton Woods systems articulated by Robert Triffin refers to
A) the unwillingness of central banks to accumulate currency for fear of not being able to convert it to gold in case a run on the banks occurs. B) consumer fear of stock market instability. C) producer fear of rising wages. D) the lack of convertibility of gold into silver. E) low consumer spending because of balance of payment crises.
When one party suffers negative external effects due to the actions of another party, a lawsuit may not lead to the efficient outcome if:
A) property rights are not clearly assigned. B) the parties have incomplete information. C) the legal costs of the lawsuit are too high. D) All of the above
Production by a monopoly would result in the socially optimal allocation of resources if
a. price is set equal to marginal cost b. marginal revenue is set equal to price c. marginal revenue is set equal to marginal cost d. price is set equal to average total cost e. marginal revenue is set equal to average total cost