A significant increase in the price of a consumer good that has suddenly become much more scarce
What will be an ideal response?
gives everyone an incentive to look for and use substitutes.
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There is general agreement among economists that rent controls cause shortages of housing, but despite this rent controls continue to persist. Why does this occur?
A. Many people do not understand the effects that controls cause. B. Property owners are politically unpopular. C. Many persons tend to benefit from rent controls. D. All of these responses are correct.
If a bank has a leverage ratio of 0.1 and a return on capital of 2%, what is its return on equity?
A) 0.2% B) 2.1% C) 5% D) 20%
If the total utility Jack receives from 10 gallons of gasoline is 16, and the total utility Jack receives from 11 gallons of gasoline is 20, the marginal utility of the 11th gallon of gasoline is
a. 1 b. 4 c. 7 d. 20 e. 21
The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3. Refer to Scenario 24-1. The price of a 1975 tennis ball in 2005 dollars is
a. $0.03. b. $0.27. c. $0.37. d. $1.00.