Crowding out is a decrease in private investment caused by:
A. Increased taxation by the government
B. Increased borrowing by the government
C. Increased consumer spending by households
D. Increased exports to buyers in other nations
B. Increased borrowing by the government
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Adverse selection is a situation in which one party to an economic transaction has less information than the other party
Indicate whether the statement is true or false
If the graph shown represents Steph's budget constraint, and the price of hairbands were to increase, the slope of Steph's budget constraint would become:
A. steeper, reflecting the fact that hairbands are now relatively less expensive.
B. flatter, reflecting the fact that hairbands are now relatively more expensive.
C. steeper, reflecting the fact that earrings are now relatively less expensive.
D. flatter, reflecting the fact that earrings are now relatively more expensive.
Rent controls typically end up
a. increasing rents received by landlords b. raising property values c. encouraging landlords to overspend for maintenance d. discouraging new housing construction e. unnecessarily increasing the long-run supply of housing
In a two-sided market with network effects, the platform will likely
A) charge a lower price for end users that are more affected by a positive market feedback. B) charge a higher price for end users that are more affected by a positive market feedback. C) charge a zero price for all end users regardless of the market feedback effects. D) randomly charge end users.