If the demand for loanable funds curve shifts rightward from the curve shown in the figure above, the shift could be the result of
A) a rise in the real interest rate.
B) a decrease in expected profit.
C) a fall in the real interest rate.
D) an increase in expected profit.
E) a decrease in real GDP.
The figure above shows the supply of loanable funds curve.
D
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If all of the returns to a resource are in the form of economic rent,
a. the demand curve for that resource must be horizontal b. the demand curve for that resource must be vertical c. the supply curve of that resource must be horizontal d. the supply curve of that resource must be vertical e. the demand curve for that resource must be perfectly elastic
According to the Heckscher-Ohlin theory, comparative advantage is based on:
a. labor productivity differences. b. product life cycles. c. the availability of skilled resources. d. consumer tastes and preferences. e. the relative abundance of the factors of production.
With a human capital investment (such as the investment in going to college), the most important cost tends to be
A. the opportunity cost of not working. B. taxes. C. books and equipment. D. foregone leisure.
When the unemployment rate is less than the natural unemployment rate
A) the output gap is positive. B) the output gap equals zero. C) the output gap is negative. D) None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate.