Which of the following describes the difference between the market demand curve for a perfectly competitive industry and the demand curve for a firm in this industry?
A) The market demand curve is a horizontal line; the firm's demand curve is downward sloping.
B) The market demand curve is downward sloping; the firm's demand curve is a vertical line.
C) The market demand curve can not have a constant slope; the firm's demand curve has a slope equal to zero.
D) The market demand curve is downward sloping; the firm's demand curve is a horizontal line.
Answer: D
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Which of the following would cause a rightward shift of the demand for loanable funds curve?
a. a fall in the marginal rate of return on investment b. a fall in the value of the marginal product of capital c. a rise in the marginal product of capital d. a fall in the investment demand curve e. a fall in the price of the product capital produces
An active deficit:
a. Is the portion of the government deficit that automatically helps a nation from falling further into a recession. b. Is always less than the actual deficit when a nation is currently below full employment. c. Is the difference between government spending and taxes at full employment. d. All of the above are true. e. None of the above is true.