A rise in the rate of people's time preference in general tends to
A) increase interest rates.
B) decrease interest rates.
C) have no effect on interest rates.
D) have no effect at all in the market for credit.
A
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Use the figure below to answer the following question.
A decrease in supply would best be reflected by a change from
A. point 3 to point 4. B. point 5 to point 6. C. point 2 to point 1. D. point 5 to point 1.
Private schools are able to exclude students from attending classes they offer unless students have been accepted and paid tuition and fees. This suggests that education is
A) subject to the principle of rival consumption. B) subject to the free-rider problem. C) not subject to the exclusion principle. D) a public good.
A soft-drink bottling company supplies six-packs of orange flavored soda to retailers for a price of $2 each. If the components in each six-pack costs the bottling company $1.50, the value added, to each six-pack, by the bottling company is:
a. $2.00. b. $1.50. c. $1.25. d. $1.00. e. $0.50.
One lesson that American policy makers can learn from the health care systems of other countries is:
a. that private insurance cannot complement government insurance. b. that a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. that the mix between general practitioners and specialists is of little importance. e. that people must be willing to accept long waiting lists for expensive services.