Following a major natural disaster that destroys housing, a rent ceiling ________ be an effective policy to increase the quantity of more affordable housing for displaced residents because it would ________
A) would not; discourage rebuilding and result in a shortage
B) would not; cause the quantity supplied to exceed the quantity demanded
C) would; cause increased search activity
D) would; create a black market that would result in a lower rent
E) would; encourage a greater quantity supplied
A
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Assume that in recent years the cost of producing microbrew beer in the U.S. has decreased largely due to technological improvements. At the same time, more and more Americans prefer microbrew beer over wine
Which of the following best explains the effect of these events in the microbrew beer market? A) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity. B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity. D) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price.
Which of the following is closest to the future value of a $100 deposit earning 5 percent interest annually after 5 years?
A. $125 B. $128 C. $1,268 D. $105
A firm's opportunity costs of production are equal to its
a. explicit costs only. b. implicit costs only. c. explicit costs + implicit costs. d. explicit costs + implicit costs + total revenue.
The effect of a tariff is
A) an increase in consumers' surplus. B) a decrease in producers' surplus. C) an increase in tariff revenues for government. D) b and c E) all of the above