49. The passage tells us _________.

　 A. the relationship between supply and demand

　 B. the possible results of government controls

　 C. the necessity of government control

　 D. the urgency of getting rid of government controls

48. 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 workers are unskilled　　　　　　　　　　　　　　 　 　 D. if the maximum wage is set

47. According to the critics, 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

46. 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 apartment

45. What kind of Challenges will not Luke Ravenstahl cope with?

A. Distrust from his citizens 　 B. pressure from other outstanding young mayors

C. economical standstill of his city　 　　　 D. decreasing population in his city

B

In cities with rent control, the city government sets the maximum rent that a landlord can charge for an apartment. Supporters of rent control argue that it protects people who are living in apartments. Their rent cannot increase, therefore, they are not in danger of losing their homes. However, the critics say that after a long time, rent control may have negative effects. Landlords know that they cannot increase their profits. Therefore, they invest in other businesses where they can increase their profits. They do not invest in new buildings which would also be rent –controlled. As a result, new apartments are not built. Many people who need apartments cannot find any. According to the critics, the end result of rent control is a shortage of apartments in the city.

Some theorists argue that the minimum wage law can cause problems in the same way. The federal government sets the minimum that an employer must pay workers. The minimum helps people who generally look for unskilled, low – paying jobs. However, if the minimum is high, employers may hire fewer workers. They will replace workers with machinery. The price, which is the wage that employers must pay, increases. Therefore, other things being equal, the number of workers that employers want decreases. Thus, critics claim, an increase in the minimum wage may cause unemployment. Some poor people may find themselves without jobs instead of with jobs at the minimum wage.

Supporters of the minimum wage say that it helps people keep their dignity. Because of the law, workers cannot sell their services for less than the minimum. Furthermore, employers cannot force workers to accept jobs at unfair wages.

Economic theory predicts the results of economic decisions such as decisions about farm production, rent control, and the minimum wage. The predictions may be correct only if “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.

44. Where can you find this article?

A. A magazine　 　　　　　　　　　　　　　　　　　 B. A brochure about politicians

C. A newspaper　　　　　　　　　　　　　　　　　　 D. An advertisement about some mayor candidates

43. What can you infer from the article about Pittsburgh?

A. It is a small town in New York famous for steel mills.

B. It has always enjoyed prosperous economic success.

C. Many young college students there are the new hope of the district.

D. It is a major city in the U.S.A with a population slightly smaller than 100,000.

42. The underlined word “dissipate” in the first paragraph probably means _________.

A. disappear　　　　　　 　　　 B. appear 　　　　　　　 C. spread　　　　　　　 D. reduce

41. About Luke Ravenstahl, which of the following statements is TRUE?

A. He is the youngest mayor in the U.S.A.

B. His family background has contributed to his successful political career.

C. His young age has won support from media and young voters.

D. He will be mayor of Pittsburgh at least until 2009.