Which of the following statements is (are) correct? The equilibrium interest rate is the rate that
a. equates the supply of loanable funds with the demand for loanable funds
b. equates new saving with investment plus the bond-financed government surplus
c. equates private savings with investment
d. All of the above
e. None of the above
A
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If the market price is $4 and a perfectly competitive firm is producing 3,200 units and the marginal cost to produce the 3,200th unit is $3.88, which of the following is true?
A) The difference between marginal revenue and marginal cost (MR - MC) for the 3,200th unit is negative. B) The firm should increase production to maximize profit. C) The firm is maximizing profit. D) The firm should decrease production to maximize profit.
Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True b. False Indicate whether the statement is true or false
A special-interest issue is one that
a. allocates the cost of the activity in accordance with the benefits received. b. benefits a small, well-organized interest group at the expense of taxpayers or consumers. c. benefits everyone and imposes a cost on everyone. d. benefits a small, well-organized interest group but makes that group pay for the cost of the program.
The marginal productivity standard of income distribution:
a. provided maximum incentive for productivity b. requires government redistribution of income c. is based on the theory that a dollar income provided greater utility to a poor person than a rich person d. all of the above