The "loanable funds market" is a term used by economists to describe the
a. demand for goods and services by households.
b. market that includes resources such as labor and capital.
c. supply of goods and services by firms.
d. market that coordinates the borrowing and lending of individuals and firms.
D
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A natural monopoly maximizes profits at the point at which price equals minimum average total cost
a. True b. False Indicate whether the statement is true or false
When the economy is in recession, personal income tax collections
a. fall along with consumption and real GDP b. fall but consumption and real GDP rise c. rise providing funds for rising unemployment insurance d. rise but unemployment insurance payments fall so incomes remain unchanged e. fall but saving and investment rise along with real GDP
Susan is a plant manager in charge of a factory in a relatively poor country. Even though market wages are low, she decides to raise the wages of her workers. Her decision
a. might increase profits if it means that the wage is high enough for her workers to eat a nutritious diet that makes them more productive. b. will help eliminate the excess supply of labor. c. may cause her workers to reduce the effort they expend at their jobs. d. All of the above are correct.
If an investor has a tax rate on interest income of 25% and the inflation rate is 4%, which bond has the lowest expected real after-tax interest rate?
A. A corporate bond paying 8% B. A Treasury bond paying 7% C. A Treasury bond paying 9% D. A municipal bond paying 6%