With rent controls set below the equilibrium rent, what mechanism might arise that moves the market closer to the efficient equilibrium?
A) decreased search costs
B) black market activity
C) increased advertising by landlords
D) more favorable leases offered to tenants
B
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The U.S. is able to maintain a large trade deficit because:
A. when the business cycle is in a boom, it will be a trade surplus. B. it is balanced by a large capital surplus. C. it is balanced by a large capital deficit. D. None of these statements is true.
Which of the following situations is most likely to result in a producer monopoly?
a. A product for which quantity is low and demand is lower b. A product for which quantity is high and demand is low c. A product for which quantity is low and demand is high d. A product for which quantity is high and demand is higher
A monopolist's profits with price discrimination will be
a. lower than if the firm charged a single, profit-maximizing price b. the same as if the firm charged a single, profit-maximizing price. c. higher than if the firm charged just one price because the firm will capture more consumer surplus. d. higher than if the firm charged a single price because the costs of selling the good will be lower.
Which of the following is an example of a negative externality (additional social cost)?
A. an increase in the value of land you own when a nearby development is completed B. the costs paid by a company to build an automated factory C. the higher price you pay when you buy a heavily advertised product D. falling property values in a neighborhood where a disreputable nightclub is operating