Which of the following must occur as a result of ceilings on apartment rents that are set below market clearing rental rates?
A) Property owners respond to the ceilings by increasing maintenance and repairs.
B) Property owners respond to the ceilings by constructing new apartment buildings.
C) There is a decrease in the quantity of apartments that prospective tenants wish to rent.
D) There is a decrease in the quantity of apartments that property owners offer for rent.
Answer: D
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Future benefits for Social Security will ultimately be determined by _____
a. population growth b. individual decisions on when to retire c. the existence of private accounts d. voters through the political process
Consider a market that is in equilibrium. If it experiences both a decrease in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely fall, while the equilibrium price cannot be predicted. C. price will definitely fall, while the equilibrium quantity cannot be predicted. D. price and quantity will both fall.
A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently earning zero profit. b. the profits of the firm are negative. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by reducing output.
Which of the following does purchasing-power parity conclude should equal 1?
a. both the nominal and the real exchange rate. b. the nominal exchange rate but not the real exchange rate c. the real exchange rate but not the nominal exchange rate d. neither the nominal exchange rate nor the real exchange rate