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In tight housing markets rent controls are often applied to hold price of housing to a reasonable level. How does this policy affect the relative gains of tenants and landlords and the allocative function of prices— (answers) it prevents landlords from gaining at the expense of tenants : the allocative function of prices is impaired. -- it prevents landlords from gaining at the expense of tenants : the allocative function of prices is NOT impaired. -- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is impaired-- it prevents tenants from gaining at the expense of landlords : the allocative function of prices is NOT impaired
Competitive firms will always try to earn more than a normal profit by doing the following, except
q.the following graph shows the demand as well as curve d of a home country facing the foreign monopoly supplier of a
Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly. What characteristics of the industry make it a monopoly? What is the impact of the monopoly power on its customers? Why might gove..
Annual Work Hours = ? + ?*(Average Hourly Wage) + ? You gather data on US workers aged 22 to 55 from the Current Population Survey. You define the Average Hourly Wage as self-reported total annual labor income divided by self-reported total annual wo..
What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..
If R and F both have 12 hours of labor that they can give to catching fish or goats, and R requires 1 hour to catch a fish and 2 hours to catch a goat, F requires 6 hours to catch a fish and 3 hours to catch a goat. They are able to trade at Pf=Pg..
q1. if the equilibrium level of aggregate expenditure is 80 billion as well as there is a reduction in consumption of 2
Explain the connections between opportunity cost and the production possibilities frontier.
The cost function for a firm is given by TC = 6,000 + 12.5Q. The firm sells output in a perfectly competitive market and other firms in the industry sell at a price of P = 25 - 0.5Q. (i) What level of output should be produced to maximize profits?
Macroeconomics: How does government borrowing crowd out investment? What is the relationship between government borrowing and budget deficits?
Assume that the job separation rate s is 0.01 (1%) per month and that the job finding rate f is 0.2 (20%) per month. What is the steady state unemployment rate for this economy? In the table from the previous scenario, how many periods does it take f..
The expenditure approach (the sum of all spendings) to measuring the value of the nation's output (GDP) is equivalent to the income approach (the sum of all payments to factors). Discuss and illustrate with examples(s) where necessary. Real GDP is th..
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