California passed a law called "Proposition 2 1/2" that limited property taxes to 2.5 percent of property value. Naturally this reduced taxes on many properties, and apartment landlords had more money at the end of the year at given rents. This windfall could be called an economic rent only if
a. we push the definition of economic rent too far.
b. the supply of rental units can be expanded.
c. the supply of rental units is fixed.
d. competitors can build housing at costs that yield the return that was earned before the tax cut.
c
Economics
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If the Federal Reserve uses open market operations to offset a recession, the Fed ________ government securities in order to ________ the federal funds rate
A) buys; not change B) sells; raise C) sells; lower D) buys; lower E) buys; raise
Economics
To avoid double counting in the calculation of GDP, which types of goods are typically excluded from the calculation?
A) intermediate goods B) capital goods C) inventory goods D) nonmarket goods E) value-added goods
Economics