Suppose the market clearing rent is $1500 per month, but a rent control is established at $1000 per month. Which is most likely to emerge?
What will be an ideal response?
The quantity of apartments demanded would exceed quantity supplied.
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If a competitive firm cannot earn profit at any level of output during a given short-run period, then which of the following is LEAST likely to occur?
A) It will shut down in the short run and wait until the price increases sufficiently. B) It will exit the industry in the long run. C) It will operate at a loss in the short run. D) It will minimize its loss by decreasing output so that price exceeds marginal cost.
A measure comparing the prices of consumer goods and services that a household typically purchases to the prices of those goods and services purchased in a base year is:
a. the GDP deflator. b. the consumer price index. c. the price level. d. inflation. e. the base measure.
The novelty of Phillips' article was his finding of a ____ correlation between ____ and ____
a. positive; unemployment; the interest rate b. negative; inflation; the exchange rate c. negative; unemployment; inflation d. positive; the rate of growth of the money supply; inflation
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. If the price of an ice cream cone is $3, Jason?s income is
A. $50. B. $375. C. $450. D. indeterminate because the price of ice cream sandwiches is not given.