A significant problem that emerged as a result of price ceilings imposed by the Office of Price Administration during World War II was that
a. the controls were largely ineffectual since most producers and consumers ignored them
b. the burden of the war effort still fell disproportionately on poor people
c. most price ceilings were set above their market equilibrium, so they had no real impact
d. rent controls discouraged investment in new housing, intensifying the chronic housing shortage
e. they created price speculation that ended up raising all prices above their equilibrium levels
d. rent controls discouraged investment in new housing, intensifying the chronic housing shortage
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To make a rational choice, a person
A) adds the total costs to determine if the total is small enough. B) adds the total benefits and the total costs and then compares the two totals. C) takes account of all benefits and all opportunity costs, including both marginal costs and sunk costs. D) adds the total benefits to determine if the total is large enough. E) compares the extra benefits of one more unit to the extra costs of one more unit.
A useful macroeconomic model
A) is extremely realistic. B) is simple. C) never generates testable hypotheses. D) provides a lot of intricate details.
The horizontal summation of the demands of each consumer at different price levels is called:
A. the price elasticity of market demand. B. the market demand curve. C. consumer surplus. D speculative demand.
The granting of small, unsecured loans to small businesses and entrepreneurs is known as
A. Extreme finance. B. Long-term finance. C. Microfinance. D. Growth finance.