Which of the following examples would most likely be caused by a price ceiling?
a. fluctuating quantity of mid-rent apartments
b. equilibrium quantity of low-income apartments
c. shortages of low-income housing
d. surpluses of mid-rent apartments
c. shortages of low-income housing
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According to the permanent-income hypothesis, a transitory increase in a person's income will
A) increase consumption more than savings. B) increase savings more than consumption. C) be smoothed out to where the increases in consumption and savings are roughly equal. D) have the same effect on consumption as a permanent increase in income.
The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is most likely due to
a. differences in education requirements. b. differences in unionization rates. c. a compensating differential. d. apprenticeship requirements.
In the graph shown above, if the government set a price ceiling of $18
A. the price would rise to the equilibrium price.
B. the price would fall to equilibrium price.
C. there would be a temporary shortage, then price would rise to equilibrium price.
D. there would be a permanent shortage, at least until the price ceiling was lifted.
Since its creation, what government entity has greatly reduced the number of bank failures by helping other banks take over the liabilities and assets of troubled banks, and thereby preventing loss of depositor funds?
a. the Federal Deposit Insurance Corporation b. the Federal Trade Commission c. the Federal Open Market Committee d. the Department of Commerce