We expect the marginal utility curve to be downward sloping
Indicate whether the statement is true or false
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Refer to Figure 21-6. The loanable funds market is given in the figure above. If the current real interest rate is 5 percent, which of the following is true?
A) There is a surplus of loanable funds in the market. B) The loanable funds market is in equilibrium. C) The quantity of loanable funds being demanded in the market is less than $90 million. D) There is a shortage of loanable funds in the market.
Rent controls tend to cause persistent imbalances in the market for housing because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
Can sales agents, such as realtors, generate economic surplus?
A. Yes, because they help ensure that goods are purchased by consumers who value them the most highly. B. No, because the value of a product is based purely on the cost of producing it and not on who buys it. C. Yes, but only if they work for free, otherwise they are a waste of resources. D. No, because sales agents don't produce anything new.
According to classical theory, full employment in the labor market occurs
A. only when actual expenditures are greater than desired expenditures. B. only when the economy has just experienced a demand shock. C. at a wage rate at which quantity demanded equals quantity supplied. D. whenever aggregate demand is less than aggregate supply.