Rent control
a. is an example of a price ceiling.
b. leads to a larger shortage of apartments in the long run than in the short run.
c. leads to lower rents and, in the long run, to lower-quality housing.
d. All of the above are correct.
d
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Budget lines are drawn on a diagram with the
A) price of the good on the vertical axis and its quantity on the horizontal axis. B) price of one good on the vertical axis and the price of another good on the horizontal axis. C) quantity of the good on the vertical axis and its price on the horizontal axis. D) quantity of one good on the vertical axis and the quantity of another good on the horizontal axis.
Cyclical unemployment is caused by
A) technological change. B) fluctuations in the business cycle. C) a dynamic economy in which people want to switch jobs sometimes. D) predictable shifts in production associated with different seasons.
Economies of scale were initially seen between
A) 1800 and 1840. B) 1970 and 1980. C) 1840 and 1910. D) none of these choices.
The supply curve of a natural resource like oil has a positive slope because
A. the supply becomes closer to exhaustion as demand rises. B. it becomes more costly to find and develop supplies as demand rises. C. rents rise as output increases. D. indirect taxes rise with output.