The value of total output decreases when labor leaves one industry and goes to another and capital leaves the second industry and goes to the first. This indicates that
A) the first situation was not efficient.
B) the second situation is efficient.
C) price is greater than marginal cost.
D) it would be efficient to return to the first situation.
D
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In the above figure, if the real interest rate is 6 percent, the quantity of loanable funds demanded is
A) $150 billion. B) $300 billion. C) $450 billion. D) $600 billion.
The crowding-out effect refers to
A) government spending crowding out private spending. B) private saving crowding out government saving. C) government investment crowding out private investment. D) private investment crowding out government saving.
Ceteris paribus, all of the following result when the minimum wage is raised and is above the equilibrium in a competitive market, except
A. Some workers lose their jobs. B. Workers with a marginal revenue product below the minimum wage are worse off. C. There are fewer workers available to work. D. There are fewer jobs available.
A diagram of an individual's utility from income will be a line with a decreasing slope if the individual is risk-loving.
Answer the following statement true (T) or false (F)