A property tax payment made by the owner of an apartment building is a
A) cost irrelevant to rent-setting decisions because it is not affected by supply and demand.
B) marginal cost of continuing to own the building.
C) marginal cost of supplying rental space.
D) marginal overhead cost and will therefore affect rental rates.
E) sunk cost and therefore cannot affect rents even in the long run.
B
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Without government involvement, wages and interest rates are set by _______________.
A. price floors B. supply and demand C. price ceilings D. None of these choices are correct
Suppose that an anti-smoking campaign in Moscow, Russia, is successful so that Muscovites smoke less and chew gum more. Tobacco companies lay off workers, while chewing gum manufacturers employ more workers. This is an example of
a. structural unemployment created by efficiency wages. b. structural unemployment created by sectoral shifts. c. frictional unemployment created by efficiency wages. d. frictional unemployment created by sectoral shifts.
The effect of an increase in interest rates on current consumption is
a) positive among borrowers if the income effect is dominant b) positive among borrowers if the substitution effect is dominant c) positive among savers if the income effect is dominant d) positive among savers if the substitution effect is dominant e) strongly positive in the aggregate consumption data
Human capital can be produced through on-the-job training.
Answer the following statement true (T) or false (F)