Explain how the market for apartments allocates the scarce supply of apartments near the city center
What will be an ideal response?
The free market for apartments resolves the question of who gets to live in the best apartments. The rental price of apartments provides incentives that effectively allocate economic resources. As the price of downtown apartments rises, only workers with the highest opportunity cost of time will be willing to rent them. All other workers will prefer to move further away and accept the consequences of a longer commute.
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Given the data in the table below, what is the short-run profit-maximizing level of output for the perfectly competitive firm?OutputTotal RevenueTotal Cost1$4$228331264161052015
A. 2 units B. 3 units C. 4 units D. 5 units
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index and current international transactions remain the same. c. The GDP Price Index rises, and current international transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index rises, and current international transactions become more positive (or less negative).
If banks hold any amount of their deposits in reserve, then they do not have the ability to influence the money supply
a. True b. False Indicate whether the statement is true or false
For economists, "myopia" refers to:
A. visual nearsightedness. B. people's difficulty in conceptualizing the future. C. people's tendency to put too much emphasis on the future and ignore important present concerns. D. people's tendency to focus on microeconomic concerns because of an inability to conceptualize macroeconomics.