A rent ceiling set below the equilibrium rent
A) ensures the availability of enough low-rent apartments in a city.
B) results in all renters and potential renters being better off.
C) creates a situation in which the quantity demanded of housing is greater than quantity supplied.
D) ensures that landlords earn a reasonable rate of profit on apartments.
E) eliminates discrimination by landlords.
C
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There are fewer than half as many publishers of college textbooks in the United States now as a generation ago. Three companies alone account for almost two-thirds of the sale of new textbooks
This market situation characterized by very few sellers is known as A) an oligopoly. B) perfect competition. C) pure monopoly. D) monopolistic competition.
The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because
A) all gains from mutually beneficial trade are captured. B) the government regulates the market. C) of the rise of the legislative apparatus that supports trade. D) the Supreme Court determines market activities.
Suppose an economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita?
What will be an ideal response?
Related to the Economics in Practice on page 306: Almost 90 percent of advertisements seen in movie theaters are produced and sold by two firms. This movie theater advertisement industry would be characterized as
A. an oligopoly. B. monopolistically competitive. C. perfectly competitive. D. a monopoly.