The above table gives the demand schedule and the supply schedule for housing in Anytown, U.S.A. If a rent ceiling of $300 is imposed in the housing market, then
A) there would be a surplus of apartments.
B) there would be a shortage of apartments.
C) the market would reach equilibrium at the quantity of 60 housing units.
D) the supply of housing would increase.
B
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The figure above shows the market for bank reserves in Futureland. If the Bank of Futureland undertakes an open market purchase of government securities that changes the quantity of reserves by $25 billion, then the federal funds rate will
A) fall to 4 percent a year. B) remain at 6 percent a year. C) rise to 8 percent a year. D) change, but more information is needed to determine by how much. E) None of the above answers is correct.
When would it make sense for a factory that is losing money to remain in operation?
(A) If the revenue from the goods being manufactured exceeds the operating cost. (B) If marginal revenue is equal to marginal cost. (C) If total cost of the goods being manufactured exceeds the operating cost. (D) If marginal product of labor becomes negative.