What are the major economic effects of rent ceilings?
What will be an ideal response?
Rent ceilings reduce the rental payments of those tenants able to find apartments at the controlled price and decrease the rental income received by landlords. They lead to a shortage of apartments, preventing some tenants from finding a suitable place to live. Another effect can be increased discrimination as landlords can choose tenants based on race, age, gender, or other criteria. Finally, rent ceilings result in black markets emerging and also increase the cost of searching for an apartment.
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Countries with the
A) biggest deflations and output contractions are countries which were never on the gold standard until 1936. B) biggest inflations and output contractions are countries which were on the gold standard until 1936. C) lowest deflations and output contractions are countries which were on the gold standard until 1936. D) biggest deflations and output increases are countries which were on the gold standard until 1936. E) biggest deflations and output contractions are countries which stayed on the gold standard until 1936.
Mathematically, price elasticity of demand is the percentage change in the:
A. quantity demanded of a good in response to a given percentage change in the price of the good. B. price of a good that is demanded in response to a given percentage change in quantity. C. quantity of a good that is supplied in response to a given percentage change in price. D. price of a good that is supplied in response to a given percentage change in quantity.
Consider two countries, A and B. Country A has a more egalitarian distribution of incomes if
a. it has a lower Gini coefficient than B b. the Lorenz curve for B lies above the one for A c. the percentage of the population below the poverty line is higher in B d. its Lorenz curve intersects from above B's Lorenz curve e. its Lorenz curve intersects from below B's Lorenz curve
Country 1 produces two goods, A and B. Country 2 produces the same two goods. Currently, country 1 produces 100A and 200B and country 2 produces 300A and 700B. Which of the following statements is true?
A) If country 1 is on its production possibilities frontier, then country 2 must be on its PPF, too. B) The PPF for country 1 is necessarily closer to the origin (or further to the left) than the PPF for country 2. C) If country 1 is productive inefficient, then so is country 2. D) Country 2 is operating on its PPF, but country 1 is clearly not operating on its PPF. E) none of the above