Which of the following is not a result of a higher federal budget deficit?
A) a higher real interest rate
B) an appreciation of the currency
C) a rise in exports
D) a fall in the price of foreign inputs
C
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Explain what will happen when the government imposes a maximum price that is above the market equilibrium price. Why is this true?
What will be an ideal response?
Refer to Figure 15-15. Why won't regulators require that Erickson Power produce the economically efficient output level?
A) because at the economically efficient output level, the marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit B) because Erickson Power will earn zero profit C) because there is insufficient demand at that output level D) because Erickson Power will sustain persistent losses and will not continue in business in the long run
Workers typically require higher wages in order to work additional hours because of the
A. Increasing opportunity cost of labor. B. Increasing marginal utility of income. C. Constant marginal utility of income. D. Decreasing value of leisure time forgone.
A lender faces a(n) ________ problem if borrowers with a greater chance of defaulting on their loans get loans from the lender.
A. adverse selection B. free?rider C. external cost D. moral hazard