Which of the following is not a component of the demand for loanable funds?
A. Household purchases of housing and durable consumer goods.
B. Business purchases of capital goods.
C. Government financing of the public debt.
D. Household saving.
Answer: D
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If an economy maintains a small rate of growth for a long period of time, then the size of the economy
A. will stay nearly constant. B. can increase by a large amount. C. can never double. D. can only increase by a small amount.
The greater the number of different goods available in an economy, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. e. more likely it is that individuals are producing only goods they want to consume.
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
a. Wages are flexible in the short run. b. Wages are flexible in the long run. c. Wages are fixed in the long run. d. Wages are fixed in the short run.
Four automobile manufacturers account for 92 percent of total sales in their industry. They experience large economies of scale and favor tariffs on imported automobiles. What additional information is needed to classify this industry as a collusive oligopoly?
a. the market share for each firm in the oligopoly b. the existence of a cartel agreement between them c. evidence that they have zero long-run economic profits d. a high Herfindahl-Hirshman Index for their industry