In the housing market, rents serve the purpose of
A) making landlords rich.
B) rationing the availability of existing housing.
C) providing an entry by the government into the housing market.
D) increasing tax collections by the community.
Answer: B
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Contrast why negative supply shocks are more challenging for policy makers than negative demand shocks.
What will be an ideal response?
If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods.
A. normal B. inferior C. complementary D. substitute
Figure 18.1Refer to Figure 18.1. ________ has a comparative disadvantage in bicycles and ________ has a comparative disadvantage in hang gliders.
A. The United States; the United States B. The United States; Canada C. Canada; the United States D. Canada; Canada
Refer to the above table. The one who likes the good the most is
A. Dave. B. Brook. C. Kate. D. uncertain since we cannot compare utility across people.