Rent control is typically imposed ostensibly for the purpose of helping the poor. Why might you be able to argue that few poor people will actually be the beneficiaries of such controls?
What will be an ideal response?
Rent control certainly does have the effect of keeping a ceiling on rent. However, it only works in the prescribed area. As poor people begin to look for housing in the regulated areas they eventually come up empty handed as they discover that there is a shortage of such housing. They must then look for housing in the unregulated area. But by now many of those who couldn't find housing in the regulated area will be bidding up the rents in the unregulated areas of the city.
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Refer to the scenario above. Which of the following statements is true about the model's prediction?
A) The prediction can be applied to estimate the returns only for a limited number of years of additional education. B) The prediction is an approximate relationship and may not hold for everyone. C) The prediction cannot be verified empirically. D) The prediction is precise, exact, and accurate for the entire population.
If an external cost exists, then who bears the external cost in an unregulated competitive market transaction?
A) nobody B) the federal government C) someone other than the producers D) the buyers of the product
The graph shown portrays a subsidy to buyers. The amount of money spent on this subsidy by the government is:
A. $3,600.
B. $2,400.
C. $6,000.
D. $800.
Inflation increases the value of money
a. True b. False Indicate whether the statement is true or false