Question

1. One of the ways rent control is inefficient is that it leads to:
A) high opportunity costs associated with wasted time searching for apartments.
B) the construction of more apartments.
C) higher-quality apartments.
D) markets that maximize total surplus.

2. After a price decrease, the quantity effect tends to:
A) increase total revenue.
B) make the price effect weaker.
C) decrease total revenue.
D) make the price effect stronger.

3. If the United States placed larger tariffs on all textiles, domestic _____ surplus would _____.
A) producer; decrease
B) producer; increase
C) consumer; increase
D) total; increase

4. Some highways have one lane; others have two, three, or more. If each lane costs $10 million per mile, an economist assumes that the total benefit of a three-lane highway must be _____ million per mile.
A) $30 or more
B) $20 to $30
C) less than $10
D) $10 to $20

Answer 1

Ans

1 A because few house owners offer houses for rent at low rent fixed by govt

2 increase because revenue=price(quantity) and quantity rises

3 producer, increase because prices increase

4 30 or more due to economies of scale