When a rent ceiling law is passed in a city, which of the following occurs?
A) The total price of renting an apartment decreases to all renters.
B) The quantity of apartments supplied does not change.
C) Some landlords and renters use methods such as "key money" to get around the rent ceiling law.
D) Renters have no trouble finding a nice, reasonably priced apartment to rent.
E) Generally the number of renters in the city increases because people move to the city to take advantage of the low-rent apartments.
C
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Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $12, the firm
A) incurs an economic loss, but will not shut down. B) will not shut down in the short run, but will leave the industry in the long run. C) will shut down. D) is breaking even.
All of the following are possible outcomes of a financial crisis EXCEPT
A) bank failings and disintermediation. B) decreases in investment. C) a recession. D) a sure competitive advantage accompanied by a comparative advantage. E) depreciation or devaluation of a currency.
Which of the following would cause the demand for computer programmers to increase?
a. an increase in the productivity of computer programmers b. a reduction in the price of a competitive input that can be substituted for computer programmers c. a decline in the productivity of computer programmers d. an increase in the wages of computer programmers due to legislative action (that is, the establishment of a price floor for computer programmers)
When economists view technological change as internal to the economy, they mean that it:
A. occurs randomly. B. occurs accidentally. C. arises deliberately from the profit motive and competition. D. arises mainly from government subsidies.