The supply of loanable funds comes from all the following, but:
A. businesses.
B. individuals.
C. government.
D. borrowers.
D. borrowers.
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If Alan Shaw reduces his work hours when his salary increases, then
A) the substitution effect of his salary increase dominates the income effect. B) leisure is an inferior good to Alan. C) the income effect of his salary increase dominates the substitution effect. D) the income effect of his salary increase is completely offset by the substitution effect.
When the government runs a large deficit,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) taxes must rise.
One of the reasons that pollution problems are as large as they are is that
a. markets let individuals and firms deplete valuable resources without charging money for doing so. b. markets are incapable of incorporating valuable resources such as air and pure water. c. governments use resources without paying for them the way that individuals and firms must. d. markets are not an efficient means to address scarcity.
Which of the following is a government response to asymmetric information?
A. external product certification B. manufacturer's warranties C. product guarantees D. government licensing