In the figure above, originally the apartment rental market is in short-run and long-run equilibrium with a rent of $600 per month. Then the government imposes a rent ceiling of $500 per month. The deadweight loss is borne by
A) the producers only.
B) the consumers only.
C) all producers and some consumers.
D) all consumers and some producers.
C
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Jason has been holding his retirement savings in a safe in his house. Currently the economy is experiencing a falling price level. He can conclude that: a. the real purchasing power of his money is remaining constant
b. the real value of his savings is increasing as long as the price level is falling. c. the real value of his savings is decreasing as long as the price level is falling. d. none of the above are true.
Suppose the Fed reduces the reserve ratio from 0.25 to 0.20 and the current level of demand deposits is $10,000 . By how much would excess reserves change?
a. Excess reserves would increase by $2,500. b. Excess reserves would increase by $2,000. c. Excess reserves would decrease by $500. d. Excess reserves would increase by $500. e. Excess reserves would increase by $4,500.
_____ goods are rivalrous in consumption and nonexcludable
Fill in the blank(s) with the appropriate word(s).
When a profit-maximizing firm in a monopolistically competitive market is in long-run equilibrium,
a. the demand curve will be perfectly elastic. b. price exceeds marginal cost. c. marginal cost must be falling. d. marginal revenue exceeds marginal cost.