Figure 14.1 -Refer to Figure 14.1.The Figure Above Represents the Market for the Market

question 53

Multiple Choice

Figure 14.1
-Refer to Figure 14.1.The figure above represents the market for pecans.Assume that this is a competitive market.If the price of pecans is $3,

• A)economic surplus is maximised.
• B)not enough consumers want to buy pecans.
• C)the quantity supplied is less than the economically efficient quantity.
• D)the quantity supplied is economically efficient, but the quantity demanded is economically inefficient.

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Definitions:

Savings Deposits

Deposits that earn interest but have no specific maturity date.

Time Deposits

Bank deposits that cannot be withdrawn before a date specified at the time of deposit without incurring penalties.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits and other liquid assets held by the central bank.

Nonbanking Public

Individuals and businesses that are participants in the financial markets but do not have the authority to accept deposits or provide banking services.