The adverse effects of rent controls include
A. excessive construction of new rental housing.
B. keeping rental rates too high in a normal market.
C. increased incentives for people to purchase their own homes.
D. reduced incentive to construct new rental housing.
Answer: D
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Which of the following would not be an example of a productivity shock?
A) The introduction of new management techniques B) A change in government regulations affecting production C) A change in the level of government transfer programs D) A spell of unusually good or unusually bad weather
In the short-run, a firm's decision to shut-down should not take into consideration
a. Avoidable costs b. Variable costs c. Fixed costs d. Marginal costs
Auctions are valuable for selling items such as
a. Pens b. Artwork c. Standard automobiles d. All of the above
Samantha has been working for a law firm and earning an annual salary of $90,000 . She decides to open her own practice. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Samantha will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which
she was earning annual interest of $1,000 . Assuming that there are no additional expenses, Samantha's annual explicit costs will equal a. $55,200 b. $221,400 c. $91,000 d. $146,200 e. $145,200