The government imposes a maximum price on apartments that is below the equilibrium price. You accurately predict that
A. renters will find that landlords start offering to furnish the apartments.
B. the law will have no economic impact.
C. the law will create a surplus of apartments.
D. landlords are less likely to do routine maintenance work in the apartments.
Answer: D
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The opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. These gains will be the result of a decrease in
A) world prices of imports. B) the consumption distortion loss triangle. C) the production distortion loss triangle. D) international labor mobility. E) excessive entry and inefficient business practices.
The use of goods and services for personal satisfaction is known as
A) the law of increasing relative cost. B) specialization. C) comparative advantage. D) consumption.
Which of the following is a government sponsored enterprise that funds or guarantees a substantial number of mortgage loans in the U.S.?
a. Fannie Mae b. Freddy Mac c. both A and B above d. neither A nor B above
A computer manufacturer wants its competitors to have a barrier to entry so it can have a monopoly. Which of the following actions would accomplish this goal?
a. producing more computers than any other manufacturer b. producing computers at a lower cost than most manufacturers c. buying the only land where the silicone used in new chips is found d. sharing its technological advancements with competitors