A temporary supply shock that raises prices will cause the real interest rate to
A) rise in both the short and long runs.
B) rise in the short run but not in the long run.
C) fall in both the short and long runs.
D) fall in the short run but not in the long run.
B
Economics
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When a market is efficient, the
A) sum of consumer surplus and producer surplus is maximized. B) deadweight gain is maximized. C) quantity produced is maximized. D) marginal benefit of the last unit produced exceeds the marginal cost by as much as possible. E) total benefit equals the total cost.
Economics
Why do we need methods of allocating scarce resources?
What will be an ideal response?
Economics