Firms are organized to keep their costs as low as possible by
A) comparing external transactions costs with internal operating cost.
B) analyzing supply and demand conditions.
C) minimizing their use of borrowed funds.
D) utilizing the latest technology.
A
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Which of the following statements describes the situation for the United States at a real interest rate of 4 percent?
a. There is a capital inflow from the United States to the United Kingdom.
b. The interest rate is at the equilibrium level for the United States.
c. The quantity of loanable funds demanded by U.S. borrowers is greater than the quantity of loanable funds supplied by U.S. lenders.
d. The quantity of loanable funds demanded by U.K. borrowers is greater than the quantity of loanable funds supplied by U.K. lenders
When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:
A. 0.67. B. 1.5. C. 2.5. D. 3.2.
Arranging matching charitable contributions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. increase; smaller B. increase; larger C. reduce; smaller D. reduce; larger
When the economy is not on the FE line and the price level is fixed, the ________ gives the level of employment.
A. effective labor demand curve B. LM curve C. IS curve D. production function