In the figure above, the demand curve shifts rightward from D0 to D1 so that D1 is the relevant demand curve. Suppose the government imposes a rent ceiling of $500 per month. In the short run there will be
A) a surplus of apartments.
B) a shortage of 200,000 apartments.
C) a shortage of 300,000 apartments.
D) neither a shortage nor a surplus of apartments.
D
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Say the economy is at its potential income at $8 trillion and the deficit is $200 billion. The structural deficit:
A. is $200 billion. B. could be more than $200 billion. C. could be less than $200 billion. D. cannot be determined from the given information.
If demand is inelastic, then price and total revenue are directly related.
Answer the following statement true (T) or false (F)
A diagram of an individual's utility from income will be a line with an increasing slope if the individual is risk-averse.
Answer the following statement true (T) or false (F)
A positive economic statement is
a. something good or desirable b. a call for improvement c. a statement of opinion d. a statement of fact e. a suggestion for policy