Suppose that, at a rental rate of $1000 per month, 650 residents wish to rent apartments and that landlords offer 800 apartments available for rent. Which one of the following statements is then TRUE?
A) There is a shortage of 150 apartments.
B) There is an excess demand for apartments.
C) The market clearing rental price of apartments is too low.
D) The market clearing rental price of apartments is less than $1000 per month.
D
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Today, the Gini coefficient of income inequality for the United States is about .5. In 1975, it had been about .4. What do these numbers tell us?
A. Wealth is distributed less equally than income. B. The number of rich people has fallen. C. The official definition of poverty has changed. D. Income has become more unequally distributed.
Which of the following transactions leads to an inflow of funds on the U.S. financial account?
A) A U.S. resident purchases a share of stock on the Hong Kong exchange. B) A U.S. resident sells wheat to an African nation. C) A resident of China purchases U.S. government bonds. D) A resident of Mexico visits the United States.
Which of the following is not a category of consumption spending in the national income accounts?
A) Consumer durables B) Nondurable goods C) Services D) Housing purchases
If the government attempts to force a natural monopoly to charge a price equal to marginal cost,
A) the natural monopoly will shut down. B) the natural monopoly will still make high profits. C) the natural monopoly's marginal cost curve will shift up. D) total welfare is maximized.