In the money market, an excess demand of money will:
A) increase the supply of bonds, increase bond prices, and decrease interest rates.
B) increase the supply of bonds, decrease bond prices, and decrease interest rates.
C) increase the supply of bonds, increase bonds prices, and increase interest rates.
D) increase the supply of bonds, decrease bond prices, and increase interest rates.
D
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In the figure above, the opportunity cost of moving from point C to point D is
A) the loss in production in the health care sector. B) the increase in production in the education sector. C) zero. D) the loss in production in the education sector.
When a firm is experiencing economies of scale, it will:
a. underuse a larger plant size than is indicated by short-run efficiency concerns. b. underuse a smaller plant than is indicated by short-run efficiency concerns. c. overuse a larger plant size than is indicated by short-run efficiency concerns. d. overuse a smaller plant size than is indicated by short-run efficiency concerns. e. produce at the minimum short-run and long-run average costs.