“
other things are equal
”
. Economists do not agree on some of the predictions. They also do not agree on the value of different decisions. Some economists support a particular decision while others criticize it. Economists do agree, however, that there are no simple answers to economic questions.
6. There is the possibility that setting maximum rent may ______.
A. cause a shortage of apartments
B. worry those who rent apartments as homes
C. increase the profits of landlords
D. encourage landlords to invest in building apartments
7. We can safely say that rent control ______.
A. will always benefit those who rent apartments
B. is unnecessary
C. will bring negative effects in the long run
D. is necessary under all circumstances
8. The problem of unemployment will arise ______.
A. if the minimum wage is set too high
B. if the minimum wage is set too low
C. if the worker are unskilled
D. if the maximum wage is set
9. The passage tells us ______.
A. the relationship between supply and demand
B. the possible results of government controls
C. the necessity of government controls
D. the urgency of getting rid of government controls
10. Which of the following statements is NOT true?
A. The results of economic decisions can not always be predicted.
B. Minimum wage can always protect employees.
C. Economic theory can predict the results of economic decisions if other factors are not changing.
D. Economic decisions should not be based on economic theory.
Passage 3
The Norwegian Government is doing its best to keep the growth of the oil industry under control. A new law limits exploration to an area south of the southern end of the long coastline: production limits have been laid down (though these have already been raised); and oil companies have not been allowed to employ more than a limited number of foreign workers. But the oil industry has a way of getting over such problems, and few people believe that the Government will be able to hold things back for long. As one Norwegian politician said last week
:“
We will soon be changed beyond all recognition
”
.
Ever since the year, the Government has been carrying out a program of development in the area north of the Arctic Circle. During the past few years this program has had a great deal of success: Tromso has been built up into a local capital with a university, a large hospital and a healthy industry. But the oil industry has already started to draw people south, and within a few years the whole northern policy could be in ruins.
The effects of the development of the oil industry would not be limited to the north, however. With nearly 100 percent employment, everyone can see a situation developing in which the service industries and the tourist industry will lose most of their workers to the oil industry. Some smaller industries might even disappear altogether when it becomes cheaper to buy goods from abroad.