Finding an apartment in New York City is difficult. People even scan the obituaries in the hopes of finding an apartment. Provide an economic explanation for this
What will be an ideal response?
Rental rates in New York City are controlled and set below market clearing rates. Under the rent controls, people don't want to give up their apartments since rents can be adjusted when a tenant leaves and a new tenant enters. This means that apartment vacancies are rare, and people who want an apartment must consider all possibilities, including death, that would generate a vacancy.
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Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year?
A) $32,000 B) $38,000 C) $54,000 D) $62,000
Every dollar added to the total reserves of the commercial banking system
A) compels the banks to reduce their loans by more than a dollar. B) compels the banks to expand their loans by more than a dollar. C) enables the banks to expand their loans by more than a dollar. D) enables the banks to expand their loans by one dollar. E) is one less dollar in the hands of the public.