One consequence of rent ceilings set below the equilibrium rent is that
A) a surplus of housing units develops.
B) renters are no longer exploited by landlords.
C) it makes the long-run housing supply more elastic.
D) search costs for housing increase.
D
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Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
According to OLI theory, a firm might be unwilling to license its production to a foreign firm for fear that its technology may be stolen or its brand name harmed, which leads the firm to internalize control over its asset and set up its own foreign
subsidiary. Indicate whether the statement is true or false
Bob views apples and oranges as perfect substitutes in his consumption, and MRS = 1 for all combinations of the two goods in his indifference map
Suppose the price of apples is $2 per pound, the price of oranges is $3 per pound, and Bob's budget is $30 per week. What is Bob's utility maximizing choice between these two goods? A) 4 pounds of apples and 6 pounds of oranges B) 5 pounds of apples and 5 pounds of oranges C) 10 pounds of oranges and no apples D) 15 pounds of apples and no oranges E) none of the above
Producer surplus is always the total area below the price and above the supply curve
a. True b. False Indicate whether the statement is true or false