Which of the following would be the most likely result of a binding price ceiling imposed on the market for rental cars?
a. frequent rental programs such as "Rent nine times and the tenth rental is free!"
b. enhanced maintenance programs to promote the high quality of the cars
c. free gasoline given to people as an incentive to a rent a car
d. slow replacement of old rental cars with newer ones
d
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Suppose that a small economy that had previously been closed becomes open. If its real interest rate had previously been below the world real interest rate, we would expect that
A) the country's real interest rate would remain below the world level. B) the country would become a net lender abroad. C) the country would become a new borrower abroad. D) the amount of loanable funds supplied in the country would decline.
If a firm sells 10 units of output at $100 per unit and 11 units of output when price is reduced to $99, its marginal revenue for the last unit sold is
A) $1. B) $10. C) $109. D) $89.
Which of the following is true?
A) The income per worker of a country is higher than its income per capita. B) The income per worker of a country increases when the amount of capital available in the country diminishes. C) The income per worker of a country is lower than its income per capita. D) The income per capita of a country increases when there is an increase in the number of workers.
Refer to Figure 23-3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP2 to GDP1. If the MPC is 0.8, then what is the change in GDP?
A) -$4 million B) -$5 million C) -$25 million D) -$40 million