If the current allocation of resources in the market for hammers is inefficient, then it must be the case that
a. producer surplus exceeds consumer surplus in the market for hammers.
b. consumer surplus exceeds producer surplus in the market for hammers.
c. the sum of consumer surplus and producer surplus could be increased by moving to a different allocation of resources.
d. the costs that sellers of hammers are incurring could be reduced by moving to a different allocation of resources.
c
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Excess reserves of banks equal
a. actual reserves minus required reserves. b. actual reserves minus demand deposits. c. assets minus the liabilities of the banks. d. required reserves minus actual reserves.
The term used to describe a situation in which markets do not allocate resources efficiently is
a. economic meltdown. b. market failure. c. equilibrium. d. the effect of the invisible hand.
Steven Landsburg has suggested that Scrooge, a character invented by Charles Dickens, was not really so bad. What could Landsburg be suggesting would happen in the market for loanable funds if all the misers of the world sold their assets and gave the money to the poor?
A. Demand would shift right, causing interest rates to rise. B. Demand would shift left, causing investment to fall. C. Supply would shift left, causing investment to fall. D. Supply would shift right, causing interest rates to rise.
PriceQuantity Demanded$510$420$330$240$150Refer to the table above. Starting at a $1 price, at what price range does demand become elastic?
A. $4-5 B. $3-4 C. $1-2 D. $2-3