An individual rents an apartment for $200 per month. His monthly opportunity cost of commuting to work from this apartment is $50. After a year, he moves to an apartment closer to his place of work, but pays $250 as rent
Compared to the initial situation, after a year: A) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment remains unchanged.
B) his direct cost of renting the apartment increases, while the indirect cost of renting the apartment decreases.
C) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment decreases.
D) his direct cost of renting the apartment remains the same, while the indirect cost of renting the apartment increases.
B
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_____ transactions refer to the export and import of goods and services as well as any international earnings on investments, both public and private
a. Current account b. Capital account c. Official reserve account d. Savings account
Suppose the government imposed a binding price ceiling in the market for housing. Other things equal, the effect of this price ceiling will be to:
A. allow fewer low-income people to buy water. B. give an incentive for buyers and sellers to of houses to make illegal transactions. C. decrease the quantity of houses for sale in the market. D. all of the choices are correct.