Which of the following is a necessary characteristic of a public good? The good is

Assume that a perfectly competitive financial market for loanable funds is in equilibrium. Which of the following is most likely to occur to the quantity demanded and quantity supplied of loanable funds if the government imposes an effective interest rate ceiling?

A) Increase/Increase B) Increase/Decrease C) No change/No change D) Decrease/Increase E) Decrease/Decrease

Smith argues that American producers cannot compete with foreign producers because wages are lower in foreign countries than in the United States. Smith is

A) advancing the foreign export subsidies argument for protectionism. B) making the mistake of believing that high wages mean high costs. C) advancing the antidumping argument for protectionism. D) making the mistake of believing that productivity is higher in foreign countries than in the United States. E) none of the above