Which of the Following Is (Are) True

question 151

Multiple Choice

Which of the following is (are) true?

• A) The interest rate is a market-determined price.
• B) The interest rate is determined by the forces of demand and supply.
• C) The market in which the borrowers and lenders meet is the market for loanable funds
• D) All of the above are true.

---

Definitions:

Allocative Efficiency

Occurs when resources are distributed in a way that maximizes the net benefit to society, with goods and services produced at the level where the last unit provides a benefit equal to its cost of production.

Purely Competitive Industry

An industry characterized by many sellers offering identical products where each seller is a price taker due to market forces.

Supply

The complete volume of a good or service offered for sale at a specified price range in a certain market area.

Elon Musk

An entrepreneur and business magnate known for his involvement in SpaceX, Tesla, Inc., and several other high-tech ventures.