In the late 1970s, savings and loans institutions were in financial trouble because they
A) had to pay low interest rates to attract depositors, but were earning low interest rates from past investments.
B) had to pay low interest rates to attract depositors, but were earning high interest rates from past investments.
C) had to pay high interest rates to attract depositors, but were earning high interest rates from past investments.
D) had to pay high interest rates to attract depositors, but were earning low interest rates from past investments.
D
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A market achieves allocative efficiency when: a. total surplus is at its maximum
b. consumer surplus is at its minimum. c. demand is perfectly elastic. d. market concentration is maximized.
Which of the following is true?
a. Competition from abroad fails to provide domestic producers with a strong incentive to improve the quality of their products and keep their costs low. b. When economies of scale are important in an industry, international trade benefits domestic consumers but harms domestic producers. c. When economies of scale are important in an industry, international trade will be particularly important for domestic producers operating in small countries. d. Economies of scale eliminate the potential gains from international trade.