The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the deadweight loss?
A) area A
B) area B
C) area C
D) area D
E) area E
C
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The Fed operating procedures employed between 1979 and 1982 resulted in ________ swings in the federal funds rate and ________ swings in the M1 growth rate
A) increased; increased B) increased; decreased C) decreased; decreased D) decreased; increased
When PAE < Y the economic response for inventories should be:
A. inventories will increase. B. inventories will decrease. C. there will be no change in inventories. D. inventories should decrease initially and then sharply increase.
Learning by doing is represented by
A) a decrease in the average total cost curve. B) an increase in the average total cost curve. C) no change in the average total cost curve. D) an increase in the average total cost curve and a decrease in the marginal cost curve.
What is personal income tax? On which principle does the federal government levy this tax?