The figure shows the market for rental units in Gladstone. The market is in equilibrium. The government now introduces a rent ceiling of $500 a month. The price of a rental unit ________ and the number of units rented ________
A) increases by $500 per month; decreases
B) increases by $100 per month; increases
C) decreases by $100 per month; decreases
D) remains the same; remains the same
C
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The figure above represents the competitive market for slices of key lime pie. When the price is $3, the total producer surplus equals
A) $0. B) $60. C) $90. D) $120. E) None of the above answers is correct.
Refer to Figure 22-4. The movement from E to B to D in the figure above illustrates
A) diminishing returns to capital. B) a decline in capital per worker. C) an improvement in technology. D) diminishing returns to labor.
Insurance that protects individuals from the loss of their bank deposits: a. makes bank officials especially careful about the loans and investments they make
b. makes it virtually impossible for a bank to fail. c. is so costly that few banks can afford it. d. makes depositors less concerned about the safety of their money than the interest rate it is earning. e. was introduced as a direct result of the financial problems of the 1970s and 1980s.
If the economy is in equilibrium at $1,000 billion national income and if the multiplier is 3 and intended investment is $400 billion, what happens to national income when intended investment decreases to $380 billion? It will
a. increase to $1,020 billion b. increase to $1,060 billion c. decrease to $980 billion d. decrease to $940 billion e. decrease to $970 billion