In which one of the following market models is X-inefficiency most likely to be the greatest?
A. Pure competition.
B. Oligopoly.
C. Monopolistic competition.
D. Pure monopoly.
Answer: D
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If an economy is producing on its PPF, then it is definitely achieving
A) both production and allocative efficiency. B) only production efficiency, but it definitely is not achieving allocative efficiency. C) only allocative efficiency, but it is definitely not achieving production efficiency. D) neither production nor allocative efficiency. E) only production efficiency.
In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the interest rate rises?
A) There is a movement to a point such as b on supply of loanable funds curve SLF0. B) The supply of loanable funds curve shifts rightward to a curve such as SLF2. C) The supply of loanable funds curve shifts leftward to a curve such as SLF1. D) none of the above
Jasime voluntarily quit her job and is now searching for a new position. Jasime is classified as a
A) job loser. B) job reentrant. C) job leaver. D) new entrant.
The marginal factor cost of borrowing $1,000 for new equipment when the interest rate is 10 percent and the MRP is $700 is
a. $1,000 b. $700 c. $100 d. $70 e. $0 since the firm won't borrow $1,000 when the MRP is only $700