Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this
What will be an ideal response?
Rental rates in New York City are controlled and set below market clearing rates. Under the rent controls, people don't want to give up their apartments since rents can be adjusted when a tenant leaves and a new tenant enters. This means that apartment vacancies are rare, and people who want an apartment must consider all possibilities, including death, that would generate a vacancy.
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What are some reasons that hedge funds have become controversial?
What will be an ideal response?
If the U.S. real exchange rate with Japan is greater than 1, then U.S. goods are relatively cheap
a. True b. False Indicate whether the statement is true or false
In which of the following market structures do you find only one seller?
A. a monopoly B. an oligopoly C. a monopolistic competition D. a perfectly competitive market
Commercial society provides incentives to specialize by
A) following one's comparative disadvantage. B) pursuing one's comparative advantage. C) producing somewhere outside the production possibilities frontier. D) producing a narrowly defined good without an interest in the wealth it generates to the producer.