Examlex

Solved

Which of the Following Decrease the Deadweight Loss from a Rent

question 192

Multiple Choice

Which of the following decrease the deadweight loss from a rent ceiling set below the equilibrium rent?
i.lowering the ceiling
ii.dedicating more resources to enforcement of the ceiling
iii.raising the ceiling


Definitions:

Swap Market

A marketplace where parties exchange financial instruments, such as interest rates or currencies.

Derivatives Market

A financial market for securities whose value derives from the value of other underlying financial assets, such as stocks, bonds, or commodities.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Futures Markets

Exchanges that facilitate the buying and selling of futures contracts, which are agreements to buy or sell assets at a future date at a predetermined price.

Related Questions