What is a shortcoming of price control legislation?
a. Price controls lower the quantity demanded.
b. Price controls often lead to reduced product quality.
c. Price controls create surpluses.
d. All of the above are shortcomings of price controls.
.B
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Which of the following occurs if the real interest rate falls?
A) The quantity of loanable funds demanded increases and there is a movement down along the demand for loanable funds curve. B) The quantity of loanable funds demanded decreases increases and there is a movement up along the demand for loanable funds curve. C) The quantity of loanable funds demanded increases and the demand for loanable funds curve shifts rightward. D) The demand for loanable funds decreases and the demand for loanable funds curve shifts leftward. E) The demand for loanable funds increases and the demand for loanable funds curve shifts rightward.
Which of the following contributes to the efficiency of markets?
A) Markets promote competition and voluntary exchange. B) Markets are able to bring about an equitable distribution of goods and services. C) Governments play an active role in the day-to-day operations of markets. D) Markets promote equal standards of living.