The equilibrium in the market for loanable funds is:
A. where the amount being saved is enough for banks to cover required reserves.
B. at the price at which the quantity supplied is slightly greater than quantity demanded.
C. where the amount being borrowed and the amount being saved is the same.
D. at the interest rate set by the Fed.
Answer: C
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A straight-line production possibilities curve has
A) an increasing opportunity cost between the two goods. B) a decreasing opportunity cost between the two goods. C) a constant opportunity cost between the two goods. D) no opportunity cost between the two goods.
Discrepancies in profitability tempt rivals to charge the more profitable consumers somewhat lower prices in order to lure them away from the firm that is "overcharging" them. This practice is referred to as
a. collusion. b. price dealing. c. skimming. d. market penetration.