The figure above shows two Lorenz curves, one before income redistribution and one after income redistribution. Lorenz curve B represents

In the absence of externalities, which of the following is true of economic efficiency?

a. It occurs where marginal costs of production equal marginal benefits of consumption. b. It occurs where quantity supplied is equal to quantity demanded. c. It maximizes the total net benefits to consumers and producers. d. All of the above. e. None of the above.

A rise in short-term interest rates that is believed to be only temporary

A) is likely to have a significant effect on long-term interest rates. B) will have a bigger impact on long-term interest rates than if the rise in short-term rates had been permanent. C) is likely to have only a small impact on long-term interest rates. D) cannot possibly affect long-term interest rates.