How are scarce housing resources allocated when a rent ceiling is in place?
What will be an ideal response?
With an effective rent ceiling, some means for allocation of housing units (other than by price) becomes necessary. Some housing is allocated by first-come, first-serve. Other housing is allocated by discrimination. Black markets also develop, where housing units are allocated at a rent higher than the regulated rent.
You might also like to view...
Pollution occurs when lumber is produced. If the lumber market is unregulated, there would be
A) overproduction of lumber compared to the efficient amount. B) underproduction of lumber compared to the efficient amount. C) sometimes overproduction and sometimes underproduction of lumber compared to the efficient amount. D) an external benefit to producing lumber.
Define GNI or Gross National Income
What will be an ideal response?
Marvin's Metal Company produces screws that it sells to Ford, which uses the screws as a component of its cars. In the national income accounts, the screws are classified as
A) inventory. B) final goods. C) capital goods. D) intermediate goods.
Firms entering a perfectly competitive industry will cause the price of the product to
A. fall. B. rise. C. remain constant. D. become more responsive to consumer demand.