Which of the following would be the most typical behavior for landlords renting rent-controlled apartments?
a. financing the construction of more housing
b. earning large profits from rentals
c. lowering the rents for apartments
d. avoiding routine maintenance
d. avoiding routine maintenance
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A large number of U.S. firms send jobs to low-wage nations as it enables them to:
a. raise the price of their products. b. reduce their cost of production. c. get better quality products. d. obtain diversified products. e. politically dominate the economies where they are offshoring.
Until recently, George lived in a home that was newly constructed in 2005 . In 2005, he paid $200,000 for the brand new house. He sold the house in 2006 for $225,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP. b. The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP. c. The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by $25,000. d. The 2006 sale affected neither 2005 GDP nor 2006 GDP.
The profit-maximizing level of output for a monopolist is the one at which marginal revenue equals marginal cost.
Answer the following statement true (T) or false (F)
Refer to the diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by:
A. diagram a only.
B. diagram b only.
C. diagram c only.
D. both diagrams a and c.