In a competitive market, a binding price ceiling causes _______ by ________.
A) market efficiency; increasing the economic surplus of the last unit of output produced and consumed
B) market inefficiency; creating a deadweight loss in economic surplus
C) market efficiency; increasing the amount produced and consumed
D) market inefficiency; increasing the amount produced and consumed
Answer: B) market inefficiency; creating a deadweight loss in economic surplus
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In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve
A) leftward shift; demand B) movement upward along; demand C) leftward shift; supply D) movement downward along; supply
Distribution is a major question to be answered by any economic system
a. True b. False Indicate whether the statement is true or false
Over the past two decades, the U.S. has persistently exported more goods and services than it has imported
a. True b. False Indicate whether the statement is true or false
Which of the following is not correct?
a. By saving a larger portion of its GDP, a country can raise its output per worker. b. Savers supply their money to the financial system with the expectation that they will get it back with a return at a later date. c. Financial intermediaries are the only type of financial institution. d. The financial system helps match people's saving with other people's borrowing.