The hypothesis that regulators eventually adopt policies that benefit the producers in the industry is known as the
A. capture hypothesis.
B. share-the-gains, share-the-pains hypothesis.
C. it's-a-rip-off hypothesis.
D. producers' hypothesis.
Answer: A
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Consider an economy where the growth rate of money supply is 2% and the inflation rate is 2%. If the quantity theory of money holds, the growth rate of real GDP in the economy will be:
A) 2%. B) 4%. C) 1%. D) 0%.
What happens to the interest rate when there is a decrease in the government’s budget surplus?
a. The interest rate will decrease. b. The interest rate will increase. c. The interest rate will either increase or decrease. d. The interest rate will remain the same.
If the cost of producing a good rises for sellers, then how will this affect the market equilibrium for that good?
a. Price will rise and quantity will fall. b. Price and quantity will both rise. c. Price and quantity will both fall. d. Price will fall and quantity will rise.
Who benefits primarily from rent? controls?
A) construction workers
B) poor people looking for low-income housing
C) all who want to rent
D) only renters who are able to get units at below-market rates