If the supply of a good decreases and demand remains constant equilibrium price:
a. Will decrease, and equilibrium quantity will increase
b. Will increase, and equilibrium quantity will decrease
c. And quantity will decrease
d. And quantity will increase
b. Will increase, and equilibrium quantity will decrease
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The objective of rent controls is to
A) ensure an adequate supply of rental housing for the poor. B) keep rents below levels that would be observed in a freely competitive market. C) encourage the construction of new rental units. D) raise revenue for the local government.
The three principal factors that explain why the aggregate demand curve is downward sloping are
a. real wealth holdings, the interest rate, and international trade b. the price level, the interest rate, and economic growth c. the interest rate, the economic growth, and international trade d. cost-pull inflation, demand-pull inflation, and real wealth holdings e. the phases of the business cycle: recession, downturn, and recovery
Officially, the payroll tax is referred to as
a. the trust fund tax. b. Social Security tax. c. contributions for social insurance. d. investment in Social Security.
Informal game theory:
A. shows how the Nash equilibrium is reached. B. relies on deductive logic. C. assumes people calculate their optimal strategy. D. considers how people actually think and behave.