Refer to Scenario 10.9. What level of output maximizes the sum of consumer surplus and producer surplus?
A) 0
B) 30
C) 45
D) 60
E) none of the above
C
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According to the income approach to measuring GDP, the largest income category is
A) profits. B) rent. C) wages. D) consumption expenditure. E) interest.
Monetary management in the United States today is under the direction of the
A) Council of Economic Advisers. B) Federal Trade Commission. C) Joint Economic Committee of the Congress. D) Open Market Committee of the Federal Reserve. E) United States Chamber of Commerce.
If the interest rate rose above the equilibrium rate, people would attempt to __________ bonds. Bond prices would __________ and the interest rate would __________
A) sell; rise; fall B) buy; rise; fall C) sell; fall; rise D) buy; rise; rise
The various signaling techniques __________ completely overcome the moral hazard problem in the case of the small borrower, so that small business loans are generally __________-term
A) can; long B) can; short C) cannot; long D) cannot; short