The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, the consumer's net gain in surplus equals
A) c - f.
B) b - f.
C) d - f.
D) The answer cannot be determined from the information given.
A
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A liquid asset is
A) an asset that can easily and quickly be sold to raise cash. B) a share of an ocean resort. C) difficult to resell. D) always sold in an over-the-counter market.
The value added of a producer is the
A) total amount for which all its products sell minus its change in inventories. B) value of its total sales once externalities are accounted for. C) value of its output minus the value of the inputs it purchases from other producers. D) quality-adjusted amount of its total sales less any commissions paid.
The responsibility of paying for the Social Security benefits for currently retired individuals falls on
A) current and future workers. B) the retired people themselves. C) no one, since the government prints the money. D) only working people over 50 years of age.
Which of the following would cause a fall in the market interest rate?
a. an increase in the risk cost of investment b. an increase in the inflation rate c. an increase in the marginal rate of return on investment d. a decrease in the marginal product of capital e. none of the above