The supply of loanable funds curve reflects
a. the inverse relationship between the market interest rate and the quantity of borrowed funds
b. the inverse relationship between the market interest rate and the quantity of saving
c. the direct relationship between the market interest rate and the quantity of borrowed funds
d. the direct relationship between the market interest rate and the quantity of saving
e. the direct relationship between the market interest rate and the quantity of present consumption
D
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Using the data in the above table, net private domestic investment equals
A) $210. B) $260. C) $510. D) some amount that cannot be determined without more information.
The primary purpose of antitrust legislation is to:
a. protect small business. b. protect the competitiveness of U.S. business. c. protect the prices of American-made products. d. ensure American labor is paid a fair wage. e. ensure firms earn only a fair profit.
Which of the following terms describes the process in which the exchange rate equalizes the prices of internationally traded goods across countries?
a. purchasing power parity b. exchange c. profiteering d. arbitrage
Carolyn's Pottery Shop produces vases that sell for $15 each. Assume that labor is the only input that varies for the firm. If Carolyn hires 10 workers, she can produce and sell 500 vases per week. If she hires 11 workers, she can produce and sell 560 vases per week. Carolyn pays each of her workers $400 per week. Which of the following is correct?
a. For the 11th worker, the marginal profit is $500. b. For the 11th worker, the marginal revenue product is $500. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.