BSNS 112 MIDTERM EXAM NEWEST ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+||BRAND NEW!!

1 | P a g e 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. 2 | P a g e What happens to maintenance when we have rent control? - ANSWERSmall 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? - ANSWERPasifika and Maori 3 | P a g e 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>