MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) The time spent looking for someone with whom to do business is called 1) _______
A) market time.
B) search activity.
C) development time.
D) elasticity of time.
E) opportunity time.
Use the figure below to answer the following questions.
2) Consider the market for housing illustrated in Figure 6.1.1 when the demand curve is D 0 The 2) _______
equilibrium in an unregulated market is
A) 1,750 rooms rented at $200 a month.
B) 1,500 rooms rented at $150 a month.
C) 1,500 rooms rented at $200 a month.
D) 1,750 rooms rented at $175 a month.
E) 2,000 rooms rented at $150 a month.
3) Refer to Figure 6.1.1. If the demand for rental housing increases and the demand curve shifts 3) _______
rightward from D t0 D , 1nd the market is unregulated, the number of rooms rented is
A) 2,000, and the rent rises to $200 a month.
B) 2,000, and the rent is at its initial level.
C) 1,500, and the rent rises to $200 a month.
D) 1,750, and the rent rises to $175 a month.
E) 1,750, and the rent rises to $200 a month.
4) An illegal market in which the equilibrium price exceeds the price ceiling is 4) _______
A) a housing market.
B) a rental market.
C) an efficient market.
D) a capital market. E) a black market.
5) If a rent ceiling imposed by the government is greater than the equilibrium rent for ho