Why do rent controls cause deadweight losses?
a. fewer apartments are rented than in the competitive market
b. more apartments are rented than in the competitive market
c. tenants have to pay more than in the competitive market
d. landlords can charge more than in the competitive market
a. fewer apartments are rented than in the competitive market
You might also like to view...
Comment on the following statement: "Since product differentiation allows price competitors to establish some market power, it would be more efficient to not permit product differentiation."
What will be an ideal response?
In the figure above, if the exchange rate is equal to 1 Canadian dollar per U.S. dollar, there is a ________ of ________currency and the exchange rate will________
A) shortage; domestic; rise B) surplus; domestic; rise C) shortage; foreign; rise D) surplus; foreign; fall
One reason that deadweight losses are so difficult to avoid is that
a. taxes affect the decisions that people make. b. income taxes are not paid by everyone. c. consumption taxes must be universally applied to all commodities. d. the administrative burden is hard to calculate.
The liquidity trap is often compared to:
A. pulling on a string. B. pushing on a string. C. pushing banks into a hole filled with liquid. D. pulling banks into a hole filled with liquid.