In the above figure, if the real interest rate is 4 percent, then there
A) there is a surplus of loanable funds.
B) is equilibrium in the loanable funds market.
C) the real interest rate will rise.
D) the demand curve for loanable funds will shift rightward.
C
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The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
A) discretionary monetary policy. B) automatic stabilizers. C) automatic monetary policy. D) discretionary fiscal policy.
When deriving the production possibilities curve, it is assumed that
A) the amount of each good that is to be produced is fixed. B) the prices of resources are fixed along the curve. C) most resources can be used to produce only one good. D) resources are efficiently used.
How could transferable pollution rights lead to pollution being reduced at the lowest possible opportunity cost?
Which of the following is NOT true of opportunity cost?
a. Opportunity costs are subjective because they depend upon how the decision-maker values his or her options. b. Opportunity costs are only the monetary costs of lost options. c. Opportunity costs are the highest-valued alternative sacrificed in order to choose an option. d. Only the decision-maker can determine his or her opportunity costs for any particular action.