Under rent control, landlords cease to be responsive to tenants' concerns about the quality of the housing because
a. with shortages and waiting lists, they have no incentive to maintain and improve their property.
b. they become resigned to the fact that many of their apartments are going to be vacant at any given time.
c. with rent control the government guarantees landlords a minimal level of profit.
d. with rent control it becomes the government's responsibility to maintain rental housing.
A
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When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
A) constant average fixed costs. B) decreasing returns to scale. C) increasing returns to scale. D) constant returns to scale.
Suppose external benefits are present in a market which results in the actual market price of $49 and market output of 800 units. How does this outcome compare to the efficient, ideal equilibrium?
a. The efficient price would be higher than $49. b. The efficient price would be lower than $49. c. The efficient price would also be $49. d. The efficient output would be less than 800 units.
In Figure 1.6, at which of the following points would the opportunity cost of producing one more car be the lowest?
A. C. B. F. C. B. D. D.
If people withdraw $1,000 from the nation's money market mutual funds and redeposit the funds in various checkable and debitable accounts, then
A. M1 and M2 will remain unchanged. B. M1 and M2 will increase. C. M1 will increase, M2 will remain unchanged. D. M1 will increase, M2 will decrease.