If the equilibrium rate of interest would be 10 percent, but the usury law sets 8 percent,
A. the quantity of funds supplied would be greater than the quantity demanded.
B. economic efficiency would be promoted.
C. some applicants for loans would likely be turned down.
D. lenders would be able to fund fully all requests for loans.
Answer: C
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Which of the following is consistent with the assumptions of marginal utility theory?
A) As Jose consumes more of one good, his marginal utility from consuming more of that good decreases. B) As Jose consumes more of one good, his marginal utility from consuming more of that good increases. C) As Jose consumes more of one good, his marginal utility from consuming more of all goods decreases. D) As Jose consumes more of one good, his marginal utility from consuming more of all good increases.
When firms benefit from the results of research and development they didn't pay for, we say firms
A) maintain a level playing field. B) free ride. C) are litigious. D) invest in knowledge capital.
When price is above the equilibrium level, suppliers offer more than demanders wish to buy
a. True b. False Indicate whether the statement is true or false
If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price,
a. the country will be an exporter of the good. b. the country will be an importer of the good. c. the country will be neither an exporter nor an importer of the good. d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.