A rent ceiling creates a shortage. As a result, there is
A) an efficient allocation of housing.
B) a surplus of housing.
C) an increase in the producer surplus in the housing market.
D) a decrease in the producer surplus in the housing market.
D
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Refer to Table 7-4. Fill in the following table with the opportunity costs of producing light bulbs and flash drives for Mexico and Canada
Light Bulbs Flash Drives Mexico Canada What will be an ideal response?
An editorial in a newspaper calling for the government to abolish the minimum wage because it takes advantage of consumers is an example of a(n)
a. positive economic statement. b. pure economic statement. c. normative economic statement. d. abstract economic statement.
Government purchases that are counted as part of GDP can be less than the government's total budget because:
A. only the budget surplus or deficit is counted as part of GDP. B. government purchases are not counted as part of GDP. C. taxes are not counted as part of GDP. D. transfer payments are not counted as part of GDP.
Suppose the market for a good is expressed as follows: Inverse demand: P = 200 - 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units?
What will be an ideal response?