Direct controls are considered inefficient because all firms are forced to pay the same costs.

Suppose that workers develop a greater taste for leisure, and thus require more time away from work. What is likely to happen to wages and the quantity of labor hired?

A) wages decrease, quantity of labor hired increases B) wages increase, quantity of labor hired decreases C) wages increase, quantity of labor hired increases D) wages decrease, quantity of labor hired decreases

Suppose a bank lends you $1,000 to purchase a car. Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?

a. Assets: loans, +$1,000 . Liabilities and net worth: checking deposits, +$1,000 b. Assets: loans, -$1,000 . checking deposits, +$1,000 . Liabilities and net worth: no change c. Assets: loans, +$1,000 . checking deposits, -$1,000 . Liabilities and net worth: no change d. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, +$1,000 e. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, -$1,000