When every good or service is produced up to the point where the last unit provides a marginal benefit to society equal to the marginal cost of producing it, ________ occurs
A) efficient central planning B) equity
C) productive efficiency D) allocative efficiency
D
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An increase in the currency drain
A) leads to an increase in excess reserves. B) decreases the size of the money multiplier. C) results in an increase in deposits. D) results in an increase in required reserves.
The most direct and important consequence of an increase in asymmetric information problems is ________
A) a decrease in the probability of loan repayment B) inability to assess the probability of loan repayment C) unwillingness of borrowers to accept the market rate of interest D) inability of creditors to acquire enough funds to meet borrowers' demand
According to the graph shown, if this economy were to open to trade, surplus would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. increase overall.
B. decrease for the producer.
C. transfer from producer to consumer.
D. increase for the consumer.
Within the framework of the aggregate expenditures model, which of the following is true?
a. When spending on goods and services exceeds the level business decision makers anticipated, inventories will rise. b. Equilibrium will always occur at the full-employment level of output. c. A nation's imports will decline as the nation's disposable income increases. d. When spending on goods and services exceeds the level of aggregate output, inventories will fall.