Who gains and who loses from rent controls?
What will be an ideal response?
Those who gain are people who live in an apartment at a rent below market level. The benefits are less if they live in their apartment because of the lower rents and would really prefer to live in an apartment with different amenities. Landlords lose income. People who want to rent an apartment but cannot find one or who live in an apartment very different from what they really want lose also.
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The price of a computer in the United States is $1,000. The price of a car in Germany is 10,000 euros. The current exchange rate is 0.9 euros per dollar
a) If a computer is exported from the United States to Germany with no barriers to trade, what will be the price of the computer in Germany? b) If a car is imported to the United States from Germany with no barriers to trade, what will be the price of the car in the United States? c) Suppose the dollar appreciates by 10 percent against the euro. How will the price of a computer exported from the United States change in Germany? d) Suppose the dollar appreciates by 10 percent against the euro. How will the price of a car imported to the United States from Germany change in the United States?
Which of the following has occurred as the millennial generation has come of age?
A) The demand for golf equipment has decreased in the U.S. market. B) The demand for traditional fast food has increased in the U.S. market. C) The demand for "fast casual" food has decreased in the U.S. market. D) all of the above
If an economy is producing a combination of goods inside its production possibilities curve, it may mean that the nation
a. is overproducing. b. is maximizing its production. c. is under utilizing its resources. d. has no room to grow.
If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve is: a. vertical
b. horizontal. c. negatively sloped. d. positively sloped.