When a rent ceiling is imposed in a housing market, the opportunity cost of housing equals the
A) rent.
B) market equilibrium rent that would prevail in the absence of a rent ceiling.
C) value of the time and resources spent searching plus the rent.
D) consumer surplus.
C
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What is the equation of exchange? How can the equation of exchange be converted into the quantity theory of money?
What will be an ideal response?
The international capital market is
A) the place where you can rent earth moving equipment anywhere in the world. B) a set of arrangements by which individuals and firms exchange money now for promises to pay in the future. C) the arrangement where banks build up their capital by borrowing from the Central Bank. D) the place where emerging economies accept capital invested by banks. E) exclusively concerned with the debt crisis that ended in the 1990s.
To sell more units, a monopolist
A) simply moves across its horizontal demand curve to a larger quantity. B) moves down its demand curve to a lower price that will increase quantity demand. C) can continue to receive the same price it always has as long as it has its customers' goodwill. D) must be willing to lower the barriers to entry that have protected it.
The scenario in which the trade deficit slowly shrinks over time is called the
a. soft-landing scenario. b. hard-landing scenario. c. fair-trade scenario. d. free-trade scenario. e. protectionist scenario.