Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that a below-equilibrium price established by rent control:
A. creates a surplus of rental housing.
B. promotes a rapid increase in the future supply of housing.
C. results in poor service and quality deterioration of many rental units.
D. leads to a reduction in housing discrimination against minorities.
Answer: C
You might also like to view...
An increase in labor productivity
A) increases the standard of living. B) might be the result of an increase in the quantity of labor. C) generally occurs when physical capital decreases because firms must then hire more workers. D) cannot occur without a corresponding increase in employment. E) decreases the standard of living.
The different rights and responsibilities which owners, workers, and managers have in different forms of business are referred to as contractual constraints
Indicate whether the statement is true or false
Consider a single-price monopolist that is in equilibrium at output level Q* and price P*. If the government imposes a new tax on the firm of $25 per unit of output, then
a. output and price will remain at Q and P b. output will fall and price will rise by $25 c. output will fall and price will fall by less than $25 d. output will rise and price will fall by $25 e. output will fall and the price will rise by less than $25
A fundamental principle of economics is that every choice has a(n) _____________ cost.
a. established b. variable c. fixed d. opportunity