Many cities in the United States use rent controls designed to make housing affordable for their citizens. a . Explain how rent controls can lead to the conversion of existing rental housing units to office space or parking lots. b. Explain how rent controls can lead to the deterioration of existing rental housing units
a . If a price ceiling is placed on rental housing, landlords may look for alternative uses for their real
estate. If they can earn a higher return by renting the building space as offices, or demolish the building
and use the real estate as a parking lot, then the rental housing supply, as a result, will decrease.
b. A price ceiling on rental units may discourage landlords from maintaining their properties. Repair
costs may exceed the price of the rentals. This may lead to a reduction in the supply of rental housing.
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In the above table, the opportunity cost of the 2nd pizza is
A) 0 cases of soda per pizza. B) 15 cases of soda per pizza. C) 95 cases of soda per pizza. D) 80 cases of soda per pizza.
The demand for U.S. dollars represents:
A) the demand for U.S. goods and financial assets by households and firms outside the United States. B) the demand for foreign goods and financial assets by households and firms within the United States. C) the demand for U.S. goods and financial assets by households and firms within the United States. D) the willingness of households and firms that own dollars to exchange them for foreign currency.
A utility possibilities frontier need not incorporate the utility of every individual.
A. True B. False C. Uncertain
Does the existence of unemployment insurance eliminate the economic costs of unemployment?
What will be an ideal response?