Government loans are more efficient than production subsidies if a young industry faces financial markets that are unwilling to provide funding to the industry due to the high risk.
Answer the following statement true (T) or false (F)
True
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The federal minimum wage in 2010 was $7.25. If this wage rate was less than the equilibrium wage, what is the effect?
A) The minimum wage does not create unemployment. B) The number of people who want to work at the minimum wage is the same as the number of available jobs. C) The number of people who want to work at the minimum wage is greater than the number of available jobs. D) Deadweight loss exists.
What area on a supply and demand graph represents consumer surplus?
What will be an ideal response?
Input efficiency:
A. means that holding constant the total amount of each input used in the economy, there is no way to increase any firm's output without decreasing the output of another firm. B. is not a requirement of Pareto efficiency in a production economy. C. exists when it is possible to produce more of one good and at least as much of every other good using the same inputs. D. is the same as efficient efficiency.
We interpret the term loanable funds to mean the flow of resources available to fund private investment
a. True b. False Indicate whether the statement is true or false