Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this?
a. They anticipate that low rents will cause low-income people to move into the city, reducing the quality of life for other people.
b. They anticipate that rent control will benefit landlords at the expense of tenants, increasing inequality in the city.
c. They anticipate that rent controls will cause a construction boom, which will make the city crowded and more polluted.
d. They anticipate that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.
D
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What is the difference between fiscal policy and monetary policy?
What will be an ideal response?
Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a surge in household wealth will result in a movement from point ________ to point ________
A) A; B B) B; A C) A; C D) A; D
A single firm in pure competition in the short run has a:
A. vertical demand curve. B. horizontal demand curve. C. horizontal supply curve. D. vertical supply curve.
The amount of money available in the economy:
A. is managed by the Federal Reserve. B. varies depending on what is considered money. C. is called the money supply. D. All of these are true.