The market's role is to ensure that nonrenewable resources are allocated across time to where they are most highly valued. This implies, if more is used today then:
a. the future supply curve shifts downward.
b. financial investments offer a lower rate of return.
c. the return on saving the resource for future use rises.
d. the expected demand for the resource in the future is low.
e. technological advancement will guarantee a steady future supply.
c
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________ is the amount of money a government collects through a tax
A) Tax incidence B) Tax bracket C) Tax revenue D) Tax burden
Legislators in a democracy are more likely to support special interests than the broad interests of citizens generally because
A) incumbents have such powerful advantages in election campaigns. B) money plays such a large role in political campaigns. C) they cannot know what the public interest requires in the absence of market information. D) they do not have to fear being voted out of office. E) they pay attention to the people paying attention to them.
If political influences, independent of any economic forces, lead to a larger government budget deficit, what will be the effect on the loanable funds market?
a. The interest rate will rise and the amount of saving will increase. b. The interest rate will fall and the amount of saving will increase. c. The interest rate will rise and the amount of saving will decrease. d. The interest rate will fall and the amount of saving will decrease. e. The interest rate will rise but the change in saving will be ambiguous.
To enhance their prestige, some country clubs like to point to the fact that they have a waiting list for new members. Even at clubs with high initiation fees, it is common that prospective members have to wait three or more years before there is room
for them on the membership rolls. How do these country clubs set the price of membership to ensure that they have a waiting list? A) Set the membership price above the market clearing price. B) Set the membership price below the market clearing price. C) Set the price so that the quantity supplied of memberships exceeds the quantity demanded. D) Set the price at a level that will generate a surplus of memberships.