Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit supply curve shifts to the left?
A) Both equilibrium rate of interest and quantity of credit will increase.
B) The equilibrium rate of interest will increase and the quantity of credit will decrease.
C) Both equilibrium rate of interest and quantity of credit will decrease.
D) The equilibrium rate of interest will decrease and the quantity of credit will increase.
B
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Suppose we believe the income response for hamburger consumption is positive (normal) at low income levels but becomes negative (inferior) at high income levels. Is the log-linear demand function a good choice for this particular product?
A) Yes, the log-linear model has an income elasticity that can be positive or negative. B) No, the log-linear model has a constant income elasticity that cannot change with the income level. C) No, the Engel curves for this case are vertical lines, and this behavior cannot be represented with the log-linear demand function. D) none of the above
Speculators in the financial market are:
A. largely thought to be detrimental to the overall health of the financial system. B. illegal, and often work in the "grey" markets despite this. C. seen by most as necessary for the health of the financial system. D. debated by some as to whether they contribute to the financial system's success.
Economic efficiency is indicated by
A. P = MC. B. P = AVC. C. P = MR. D. MR = MC.
A research project is conducted by offering a randomly selected 300 of the 500 local Toyota Prius owners a chance to use a new fuel additive for 6 months to see if their gas mileage improves. 225 of the 300 randomly selected Prius owners agree to the offer, 50 of those drop out of the project after 1 month, another 50 drop out after 2 months, and 25 more drop out after 3 months. The rest remain for the duration of the project. Using the intention to treat method, the results from how many of the Prius owners who were randomly selected should be included in the research project?
A. 100 B. 200 C. 225 D. 300