Table 6.1Refer to Table 6.1. When quantity = 5, this market is ________ because ________.
A. inefficient; willingness to pay > marginal cost
B. inefficient; willingness to pay < marginal cost
C. efficient; willingness to pay = marginal cost
D. producing too much consumer surplus; willingness to pay > marginal cost
Answer: C
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The dollar demand curve in the foreign exchange market is:
A) vertical. B) downward sloping. C) upward sloping. D) horizontal.
Explain how each of the following events would affect the supply of loanable funds curve:
a. The economy is in a recession so people's disposable income is lower. b. The stock market is booming so people's wealth is higher. c. The future looks a bit more grim, so expected future income is lower. d. The real interest rate increases.
In the above figure, if 2 million computers are produced per year then the ________ should be produced to achieve the allocatively efficient use of resources
A) marginal cost of a computer exceeds the marginal benefit of a computer, so more computers B) marginal cost of a computer exceeds the marginal benefit of a computer, so fewer computers C) marginal benefit of a computer exceeds the marginal cost of a computer, so more computers D) marginal benefit of a computer exceeds the marginal cost of a computer, so fewer computers
Discount loans intended for banks that are not financially healthy are called
A) primary credit. B) secondary credit. C) seasonal credit. D) repo loans.