Answer the following statement(s) true (T) or false (F)
1. If a government collects more taxes than it spends, there is a budget deficit.
2. Firms and households create the demand for loanable funds.
3. Both the supply and the demand curves of loanable funds are negatively sloped.
4. A low saving rate makes more money available for investment.
5. Early in the twenty-first century, it was common for people to get mortgages with no down payment and minimal documentation.
1. False
2. True
3. False
4. False
5. True
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Which of the following explain the natural rate of unemployment?
i. job search ii. the Okun Gap iii. the production function A) iii only B) ii and iii C) i and ii D) i and iii E) i only
In Delaware County, Pennsylvania, all homes, businesses, and other organizations purchase their water from one seller, Philadelphia Suburban Water Co (PSWCo)
Economists refer to public utility companies like PSWCo as natural monopolies because their A) marginal cost curves lie everywhere beneath their average fixed cost curves. B) marginal cost curves lie everywhere beneath their demand curves. C) average total cost curves lie everywhere above their demand curves. D) None of the above answers is correct.
An industry that realizes such large economies of scale in producing its product that single-firm production of that good or service is most efficient is called a(n)
A. fixed cost monopoly. B. patent monopoly. C. economies of scale monopoly. D. natural monopoly.
Which of the following are examples of institutions that economists would classify as belonging to the financial capital market?
A. banks B. savings and loans C. the stock market D. all of the above