The diagram above illustrates the market for apartments in Victoria, British Columbia
a) If the current rent is $300 per month, is there a shortage or surplus in the apartment market and how much is the shortage or surplus? b) What is the equilibrium rent and quantity of apartments?
a) If the rent is $300 per month, there is a shortage of 30,000 apartments.
b) The equilibrium rent is $400 per month and the equilibrium quantity is 40,000 apartments.
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The free rider problem refers to a situation in which
A) the marginal cost of allowing additional consumers to consume a public good is zero. B) high income individuals subsidize the production of goods, such as education, that make society better off. C) people consume a pure public good without payment, even though the good may not be produced if no one chooses to pay. D) markets fail to allocate resources efficiently when benefits outweigh costs.
Which of the following statements is true about migration behavior?
A. Older workers are more likely to migrate than younger workers. B. Migrants are more likely to migrate to countries farther rather than nearer to their home country. C. Single workers are more likely to migrate than workers with spouses and children. D. Workers are less likely to migrate where "beaten paths" exist.