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BSNS 112 MIDTERM EXAM NEWEST 2024-2025
ACTUAL EXAM COMPLETE 300 QUESTIONS
AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW!!
Does rent control work in the short run? Why? - ANSWER- Yes it will, there will still be a shortage from extra demand.It works because Demand will be inelastic and Supply is virtually perfectly inelastic because home owners won't be able to get rid of their properties.
Does rent control work in the long run? What happens to supply and demand? - ANSWER- In the long run there will be a much larger shortage.Both Supply and Demand will get more elastic. Suppliers may convert rental housing into commercial buildings for example, and people may decide to go flatting at a younger age or decide to sell their home and rent.
What happens to allocation with rent control? - ANSWER- People rent homes that are wrong sized.People rent homes that a wrongly placed (longer commutes) Wrong Tenure: there is a decrease in incentives to be a home owner. 1 / 4
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What happens to maintenance when we have rent control? - ANSWER- Small things that legally don't have to be changed will not get changed.The logic is that if you cannot increase price you will not update it.
What are the 2 criticisms of a minimum wage? - ANSWER- 1) It increases unemployment among low skilled workers 2) It doesn't get to the root of the problem - a lack of skill
Will a minimum wage be binding if it is set above the equilibrium wage?
- ANSWER- Yes it will be :)
What is the trend of NZ's unemployment? - ANSWER- Generally decreasing (especially in recent years) with increases in recessions.
Does NZ have unusually high or low unemployment at the moment? - ANSWER- Unemployment is unusually low
What is the trend in unemployment as age increases? - ANSWER- There is a general decrease in unemployment?
What age group has the highest unemployment? - ANSWER- 15-19 yr olds
What 2 ethnic groups have the highest unemployment? - ANSWER- Pasifika and Maori 2 / 4
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What does unemployed mean? - ANSWER- People who do not have a job, but are available to work and are actively seeking employment
What does it mean to be Underemployed? - ANSWER- People who are employed part time (<30 hours per week) and who want to work longer hours
What does it mean to be an 'Available Potential Jobseeker'? - ANSWER- People who want a job and available to work, but not actively looking
What is an Unavailable jobseeker - ANSWER- People who are unavailable to start work now, but will start looking in the next month
Is youth unemployment higher, lower or the same with a minimum wage? - ANSWER- Higher
What did Card and Krueger's research about unemployment say? - ANSWER- The increase in the minimum wage did NOT increase unemployment
How would it be explainable that a minimum wage would not effect unemployment? how is this explainable? - ANSWER- For this to happen, demand would need to increase. This is explainable if paying workers more encouraged them to work harder.
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What is Welfare economics? - ANSWER- the study of how the allocation of resources affects economic wellbeing
When is welfare maximized? - ANSWER- When markets are efficient
What is Consumer Surplus? - ANSWER- A buyer's willingness to pay (WTP) minus the amount actually paid
What is producer surplus - ANSWER- the amount a seller is paid for a good minus the seller's marginal opportunity (or what they wanted to sell the good for)
What is the Horizontal Interpretation of the Demand Curve? - ANSWER- The number of units that demanders in the market would buy at any certain price
What is the Vertical Interpretation of the Demand curve? - ANSWER- The demand curve plots the maximum someone among the demanders is willing and able to pay for each unit of the good
What is the Horizontal interpretation of the Supply curve? - ANSWER- The number of units that suppliers in the market would sell at any given price
What is the Vertical Interpretation of the Supply curve? - ANSWER- The supply curve plots in increasing order; the minimum someone
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