chapter 10

What analysis is applied to the market for loans?

• Cost-benefit analysis

• Demand and supply analysis

• Risk assessment analysis

• Profitability analysis

What is the relationship between production and savings?

• Savings are unnecessary for production

• Savings ensure resources for future production

• Savings decrease production efficiency

• Savings increase immediate consumption

What is the significance of time in the context of consumption?

• Time has no impact on consumption

• People prefer to consume later to save money

• People are willing to pay more to consume now

• Time only affects production, not consumption

What is the term for the interest rate at which the quantity of loans demanded equals the quantity of loans supplied?

• Interest rate

• Demand for loans curve

• Supply of loans curve

• Equilibrium interest rate

Which of the following is a factor that can shift the supply of loans curve?

• Changes in consumer preferences

• Changes in interest rates

• Changes in government policy

• Changes in technology

What is another factor that takes time as mentioned in the document?

• Investment

• Sales

• Advertising

• Research

What is the relationship between investment and time?

• Investment takes time

• Investment is immediate

• Investment is unnecessary

• Investment is quick

What role will the other half of the class take in the activity?

• Lenders

• Borrowers (prospective business owners)

• Managers

• Employees

What is the goal of lenders in the activity?

• To give loans at the lowest interest rate

• To give loans at the highest possible interest rate

• To borrow money at the highest interest rate

• To save money

What economic concept is illustrated by the intersection of supply and demand curves?

• Inflation

• Equilibrium

• Recession

• Deflation