Savers supply funds to those who want to borrow for their investment spending needs in the:
A. market for interest rates.
B. market for loanable funds.
C. market for savings.
D. stock market.
Answer: B
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Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total TonsPer DayNumber ofMinersMother Lode10025Scraping Bottom3010Middle Drift7515Suppose Earth Movers & Shakers needs to fill an order for 60 tons of ore in a single day. If it has no other orders for that day, it should:
A. take 30 tons from Scraping Bottom and 30 tons from Middle Drift. B. take it all from Middle Drift. C. take 20 tons from each of the three mines. D. take it all from Mother Lode.
If supply increases and demand decreases, the new equilibrium price will be ________ and the new equilibrium quantity will be ________.
A. lower; lower B. lower; uncertain C. higher; uncertain D. higher; higher
What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?
A) The value of the output generated by the government-spending program compared to its opportunity cost B) The total number of jobs created by the program C) The reduction in the rate of unemployment as the result of the spending on the program D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program
Which of the following is true of a constant-cost production-possibility curve?
A. Along a constant-cost production-possibilities curve, the opportunity cost of producing more of a good is constant. B. A constant-cost production-possibilities curve is drawn as a positively sloped straight line. C. When a country engages in free trade, the constant-cost production-possibility curve shifts to the right. D. A country with a constant-cost production-possibility curve partially specializes in the production of goods when it engages in free trade with other nations.