Rent controls can cause distortions in resource allocation by
a. causing too many resources to be devoted to housing
b. creating a surplus of housing
c. creating incentives toward home ownership rather than renting
d. causing too few resources to be devoted to housing
e. decreasing the demand for rental units
D
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The market to buy and sell organs:
A. is missing. B. has been banned by public policy. C. would create surplus for those who would interact in it. D. All of these are true.
A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities. b. the interest rate it pays on deposits and the rate it receives on loans. c. its primary deposit and its derivative deposit. d. its assets and its liabilities. e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.
Briefly and concisely define the following terms
a. voluntarism b. direct controls c. depletable resource
Labor-market discrimination is evident when
a. wages of individuals differ on the basis of some recognizable attribute that is unrelated to productivity. b. wage rates differ for similar jobs. c. consumers prefer to shop at some stores, and not at others. d. wages reflect workers' human capital.