Following Example 8.8 in the book, the long-run supply of rental housing in most U.S. communities is more inelastic than the long-run supply of owner-occupied housing. Why?
A) Local rental housing regulations
B) Limited demand for rental housing
C) Limitations on the urban land available for rental housing
D) A and C above are correct
D
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Specialization implies that an individual should produce the good for which he/she has the ________ opportunity cost.
A. necessary B. highest C. general D. lowest
Which of the following benefits from a quota or VER?
A) domestic producers B) the government C) consumers D) all of the above
The implicit GDP deflator is
A) nominal GDP divided by real GDP. B) nominal GDP times real GDP. C) real GDP divided by nominal GDP. D) the zero economic growth society.
Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality. B) externalize the externality. C) result in a marginal social benefit greater than the marginal cost of the electricity. D) be an example of supply-side economic policy.