Residents of cities with a reputation for good weather, ceteris paribus,
A) pay a higher price for housing because the demand for housing is higher.
B) pay a higher price for housing because the supply of housing is higher.
C) pay a higher price for housing because the supply and demand for housing is higher.
D) pay the same for housing as they would in cities with a reputation for bad weather.
A
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Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) J + H B) C + E + J + H C) C + E D) G + H
Recent research indicates that inflation performance (low inflation) has been found to be best in countries with
A) the most independent central banks. B) political control of monetary policy. C) money financing of budget deficits. D) a policy of always keeping interest rates low.
The amount of money that a wheat farmer could have earned if he had planted barley instead of wheat is
a. an explicit cost. b. an accounting cost c. an implicit cost. d. forgone accounting profit.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAOn the basis of your calculations in Table 1.2, what is gained by producing at point B rather than point C?
A. 30 Stealth bombers. B. 10 B-1 bombers. C. 45 B-1 bombers. D. 180 Stealth bombers.