When the price of a good increases, the quantity demanded of loanable funds ______. When the interest rate increases, the quantity demanded of loanable funds ______. When the interest rate increases, the quantity supplied of loanable funds ______
a. decreases, decreases, decreases
b. increases, decreases, decreases
c. increases, decreases, increases
d. decreases, increases, increases
e. increases, increases, increases
C
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Refer to Figure 4-1. Kendra's marginal benefit from consuming the third ice cream cone is
A) $13.00 B) $2.50 C) $1.50 D) $0.50
In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. Planned aggregate expenditure equals:
A. 990 + 0.80Y. B. 990 + 0.20Y. C. 900 + 0.80Y. D. 940 + 0.80Y.
An economic model is
A) a generalization that summarizes all the normative assumptions we make about a particular issue. B) a description of some aspect of the economic world that includes only those features of the world that are needed for the purpose at hand. C) a statement that describes how the world should be. D) a collection of facts that describe the real world.
State three reasons for a potentially beneficial role of government intervention.
A. Creating barriers to entry to promote market efficiency. B. Providing public goods. C. Restraining trade so prices rise. D. Correcting informational problems. E. Generating a government failure to affect market pricing. F. Offsetting the incentive effect provided by wages. G. Correcting for negative or positive externalities.