If a government enacts a rent control to protect apartment tenants, the result is likely going to be
a. an increase in rents with a surplus of apartments.
b. an increase in rents with a shortage of apartments.
c. a decrease in rents with a surplus of apartments.
d. a decrease in rents with a shortage of apartments.
d
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Mr. Sweet opened a candy store. He rented a building for $30,000 a year. During the first year of operation, Sweet paid $40,000 to his employees, $10,000 for utilities, and $20,000 for goods he bought from other firms. His total revenue was $135,000
Sweet's best alternative to running this candy store is to work for Wal-Mart as a sales associate for $15,000 a year. What is Sweet's total opportunity cost? A) $15,000 B) $100,000 C) $135,000 D) $115,000
Classical economists believe that a market economy will normally
A) suffer from extended periods of sustained unemployment. B) achieve full-employment output. C) degenerate into pure monopolies in most industries. D) eliminate the problem of economic scarcity.