Ian McDonald owns a company that sells sleds in a perfectly competitive market. A lighter-than-normal snowfall has caused the market demand curve for sleds to shift to the left. In the short run, which of the following is likely to happen?
a. The market price for sleds will remain unchanged.
b. The market price for sleds will increase.
c. More sled producers will enter the industry.
d. Increased economic profit will be earned by the firms in the sled industry.
e. The market price for sleds will fall.
E
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The introduction of a new currency is generally sufficient to achieve a permanent reduction in the inflation rate
a. True b. False Indicate whether the statement is true or false
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market purchases of government securities by the central bank. b. An increase in the discount rate. c. A reduction in the reserve ratio by the central bank. d. A reduction in the preferred asset ratio for currency in circulation (C/D), due to a shift in household preferences. e. All of the above increase the supply.
Research into new technologies conveys neither negative externalities nor positive externalities
a. True b. False Indicate whether the statement is true or false
Both screening and signaling:
A. correct inefficiency in the market. B. can increase surplus gained in a market. C. allow more transactions to take place that are valuable to buyers and sellers. D. All of these statements are true.