Consider the market for credit. When the supply of credit increases while the demand for credit remains unchanged,
A) the interest rate will decrease and the amount of credit provided in the market will increase.
B) the interest rate will increase and the amount of credit provided in the market will increase.
C) the interest rate will decrease and the amount of credit provided in the market will decrease.
D) the interest rate will increase and the amount of credit provided in the market will decrease.
A
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The efficient level of public good provision is determined
a. where the market demand curve intersects the marginal cost curve b. where the sum of individual valuations equals the sum of marginal costs c. without regard to economic factors d. where marginal revenue product equals marginal factor cost e. at the minimum point of the average total cost curve
Explain how a consumption tax could lead to a decrease in real interest rates
An entrepreneur knits sweaters for sale. The entrepreneur has fixed costs of $100. When he makes 10 sweaters in one month, he must spend $15 on wool. To make eleven sweaters in one month, he must spend $17 on wool. If he has no other costs, what is the marginal cost of the eleventh sweater?
a) $1 b) $2 c) $17 d) $117
The two largest sources of federal tax revenue are the _____ and the _____ tax.
Fill in the blank(s) with the appropriate word(s).