Rent ceilings are difficult to abolish because
A) they create such large profits for landlords.
B) current renters offer political support for ceilings.
C) the government doesn't like to give up the tax revenues associated with ceilings.
D) they result in an efficient use of resources.
E) landlords lobby to keep them in place.
B
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Laura Kaid owns a business and is willing to invest in capital until, at the margin, her investment yields a cash stream with a present value less than the marginal cost of the investment
a. True b. False
Under a pure flexible exchange rate system, the rate that equates demand and supply in the exchange rate market will also lead to a balance of
a. merchandise exports and merchandise imports. b. current account transactions. c. capital account transactions. d. current and capital account transactions.
If you grant that the long-term benefits of Head Start are in doubt and focus, instead, on the short-term benefits, you find that
A. children in Head Start are more likely to need special education classes. B. children in Head Start are less likely to repeat first or second grade. C. Head Start has no effect there either. D. Head Start children do much worse in Kindergarten.
The market demand curve for a public good:
A. shows the total number of units that would be produced by the private sector at each possible price. B. is derived in the same manner as demand curves for private goods. C. shows the total value that all individuals place on each unit of the good. D. is derived by horizontally summing all individual demand curves.