New growth theory suggests that the accumulation of knowledge capital can be slowed because knowledge is both nonrival and nonecludable. How does the federal government intervene in the market to increase the amount of knowledge capital?

Without any change in the supply of labor, how will shifts in the demand for labor affect equilibrium wage and employment?

What will be an ideal response?

The figure above shows the demand for and supply of rental housing in Smallton. If a rent ceiling is set at $400, there is

A) a shortage of 4,000 units of rental housing. B) a shortage of 2,000 units of rental housing. C) a surplus of 3,000 units of rental housing. D) neither a shortage nor a surplus of rental housing.