What is the most likely effect of legislated rent controls on the rental vacancy rate in an area adopting such controls?
A) The vacancy rate will not change because rent controls don't change the demand (curve) for housing.
B) The vacancy rate will rise because owners will be less eager to have tenants in their buildings.
C) The vacancy rate will fall because rent controls create a shortage situation.
D) The vacancy rate will become wholly arbitrary and unpredictable because allocation decisions will have to be made by political rather than economic criteria.
C
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If the annual interest rate is 9%, what would you expect to pay for a bond paying a lump sum of $10,000 in two years?
A) $8,417 B) $8,200 C) $10,000 D) $11,881
Unemployment insurance:
A. varies widely across countries. B. has a set minimum in the US. C. is typically 32 weeks in the US, except for times of unusually high unemployment. D. All of these are true.
Which of the following is not an example of a flow variable?
a. The amount of income that a person earns each month b. The amount of interest that a savings account earns each week c. The amount of money in a savings account d. The amount of taxes that a person pays each year e. All of these are flow variables
Opportunity cost can always be measured in money terms.
Answer the following statement true (T) or false (F)