In a housing market with a rent ceiling below the equilibrium rent, apartment seekers spend more time searching for an apartment than they would in a housing market without a rent ceiling. Why does this difference exist?
A) In the market with the rent ceiling, renters are searching for the best buy in apartments.
B) In the market with the rent ceiling, there is a wide variety in the quality of apartments for rent.
C) In the market with the rent ceiling, the quantity of housing demanded is greater than quantity supplied at the ceiling price.
D) The premise of the question is incorrect because people spend less time searching with a rent ceiling since they no longer need to look for a low-priced apartment.
E) The premise of the question is incorrect because there is no difference in the search time between a market with a rent ceiling and one without a ceiling.
C
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Suppose early one Friday morning the economics club buys 200 donuts at 25 cents each, and plans to sell all of them later in day on campus for 50 cents each
Only 60 donuts are sold at 50 cents, however, and by early afternoon the club is seen trying to unload the remaining donuts for 10 cents each. What is the correct price of one of donut? A) 10 cents B) 25 cents C) 50 cents D) Stated this way, the question is meaningless.
Banks in the United States operate under a fractional reserve system, which means they must maintain only a fraction of their deposits in the form of
A) debt. B) loans. C) an insurance policy. D) reserves.
According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to
a. widen or aggravate the income disparity between skilled and unskilled workers. b. reduce the income disparity between skilled and unskilled workers. c. lower the wages of both groups of workers. d. raise the wages of both groups of workers.
Which of the following fiscal programs is least likely to increase aggregate demand?
What will be an ideal response?