Difference among the resource market and producer market

Assignment Help Macroeconomics

Reference no: EM1337166

1. Distinguish between the resource market and the producer market in a circular flow model. In what way are businesses and households both sellers and buyers in this model? What are the flows in the circular flow model?

Application

1. The famous Swedish economist Assar Lindbeck remarked in his book on rent controls, "Rent control appears to be the most efficient technique presently known to destroy a city - except for bombing." Rent controls place price ceilings on rents at levels below equilibrium rental rates for the stated purpose of making housing more affordable for low-income families. Using supply and demand analysis, answer the following questions:

a. How does imposing rent controls affect the number of housing units available to low-income families?
b. Under rent controls, can all low-income families get rent-controlled housing?
c. Who gains from rent controls? Who loses?
d. Why would Professor Lindbeck think rent controls are destructive?
e. Is there an alternative policy to make plenty of housing available to low-income families that would not be subject to the problems of rent controls? Explain in detail.

Reference no: EM1337166

Questions Cloud

Knowledge about capital structure : Capital structure is one of most complex areas of financial decision making because of its interrelationship with other financial decision variables. What is the firm's capital structure?

Suppose that the money market is initially in equilibrium : Suppose that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to.

Project be categorized by risk class : Why would a project be categorized by its risk class? What effect does this categorization have on the cost of capital?

What is the role in object-oriented programming : What is the difference between functional and imperative programming language?

Difference among the resource market and producer market : Difference among the resource market and the producer market in a circular flow model. In what way are businesses and households both sellers and buyers in this model.

Complete a financial analysis on target corporation : Complete a financial analysis on Target Corporation. Use all relevant rations.

Explain about elements of marketing mix : Explain about Elements of Marketing Mix and What are some marketing mix decisions you must consider when creating your marketing plan

Explain executives based on their needs : assume that you acting as an IT consultant for them. What software solutions would you recommend to your executives based on their needs? Explain your answer.

Explain about market and mixed economies : Explain about Market and Mixed Economies and Debate the benefits and drawbacks of both market and mixed economies

User Account

All Pages