A survey of income by county revealed that four of the five wealthiest counties were located in the suburbs surrounding Washington, D.C. Why?
Normally, wealth is associated with producing goods and services. Since there are no major manufacturing industries in the Washington area, we must attribute the wealth of these counties to the redistribution of wealth rather than its creation. The growth in the redistributive function of government has expanded the opportunity to engage in rent-seeking activities. This wealth probably reflects the success of the participants in the rent-seeking industry.
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The deadweight loss in a housing market with a rent ceiling set below the equilibrium rent is the
A) loss to those who cannot find apartments and the gain to landlords who charge black market rents. B) loss to those who cannot find apartments and the loss to landlords who cannot offer housing at the lower rent ceiling. C) loss to landlords and the gain to tenants who pay a fairer rent. D) loss to tenants and the gain to landlords who have the incentive to offer more apartments for rent. E) gain to landlords and to tenants because now a fairer rent is charged.
The CPI is reported once every
A) year. B) quarter. C) month. D) week. E) other year.