Which of the following occurs when a shortage occurs in the market for a good?
a. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.
b. Quantity supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption.
c. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption.
d. Quantity supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption.
A
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When a rent ceiling below the equilibrium rent is put in place, the outcome is
A) efficient because marginal benefit equals marginal cost. B) inefficient because marginal benefit equals marginal cost. C) inefficient because marginal benefit is greater than marginal cost. D) inefficient because marginal benefit is less than marginal cost. E) efficient because marginal benefit is greater than marginal cost.
If you were building a macroeconomic model that explores the effect of the increase in interest rates on the inflation rate in Great Britain, interest rates would be an ________ variable and the inflation rate would be an ________ variable
A) endogenous; endogenous B) endogenous; exogenous C) exogenous; exogenous D) exogenous; endogenous