Which of the following is not a component of the demand for loanable funds?
A. Household purchases of housing and durable consumer goods.
B. Business purchases of capital goods.
C. Government financing of the public debt.
D. Household saving.
Answer: D
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Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 4 cents per page. With no change in demand and technology, in the long run, the price will
A) remain unchanged. B) rise to 5 cents per page. C) fall to 2 cents per page. D) fall to 1 cent per page.
If public goods can be produced more efficiently, then
A) public goods increase, and private goods may increase or decrease. B) public goods production stays the same, and private goods increase. C) public goods and private goods both increase. D) public goods production falls, and private goods production rises.