When the interest rate increases, the cost of financing investments ______ and _____ investment projects will be undertaken.
a) increases; more
b) increases; fewer
c) decreases; more
d) decreases; fewer
Answer: d) decreases; fewer
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Which of the following is NOT an attempt to evade rent controls?
A) make life unpleasant for tenants B) require tenants to get furniture from the landlord C) subletting D) using the courts to challenge the sublease of a tenant
A natural monopoly has a. constant average costs cost over the relevant range of output. b. economies of scale over the relevant range of output
c. constant returns to scale over the relevant range of output. d. diseconomies of scale over the relevant range of output.
Suppose that when the price of good X falls from $6 to $4, the quantity demanded of good Y rises from 30 units to 40 units. Using the midpoint method, the cross-price elasticity of demand is
a. -0.71, and X and Y are complements. b. -1.40, and X and Y are complements. c. -0.71, and X and Y are substitutes. d. -1.40, and X and Y are substitutes.
The less freedom young mothers have to work outside the home, the
a. more elastic the supply of labor will be. b. less elastic the supply of labor will be. c. more horizontal the labor supply curve will be. d. larger is the decrease in employment that will result from a tax on labor.