As shown in the figure above, the rent ceiling
A) decreases consumer surplus.
B) increases producer surplus.
C) decreases deadweight loss.
D) increases the quantity of housing rented.
E) is efficient.
A
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The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that if technology, imports, and other factors remain constant, these conditions will
a. shift the market demand curve outward so that price will rise to the level of production cost. b. cause the remaining firms to collude so they can produce more efficiently. c. cause the market supply to decline and the price of textiles to rise. d. cause firms in the textile industry to suffer long-run economic losses.
In the case of completely unorganized and ill-informed consumers, the political support function:
A. bends forward. B. bends backward. C. becomes vertical. D. becomes horizontal.
When a bank takes money that you put in your checking account and gives it to someone else, at a cost, for a period of time, it is said to be
A) making a loan. B) making a deposit. C) internalizing an externality. D) creating commodity money.
The designate M1 measure of money consists of
A) the most liquid types of money in the U.S. system. B) small time deposits only. C) credit cards and ATM cards. D) gold and gold coins.