The existence of long term leases agreements in rental markets:
A. harms landlords and benefits tenants by preventing landlords from raising the rent each month.
B. solves a commitment problem that is inherent in markets with imperfect information.
C. creates an informational advantage for landlords.
D. benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.
Answer: B
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In a market system, the ultimate decision about what to produce is left to
A) buyers. B) the government. C) sellers. D) households.
In 2012, Country X and Country Y had the same production possibilities, illustrated in the figure above. Country X chose to produce at point A, while country Y chose to produce at point B
In 2018, most likely, Country X will be at point such as ________ while Country Y will be at point such as ________. A) A; B B) B; A C) N; Q D) Q; N
Why is normal profit an opportunity cost?
What will be an ideal response?
The contributive standard of income distribution is met by
A. setting wages according to marginal productivity. B. having the government determine all wages. C. using local committees to determine the needs of families in the area. D. having a highly progressive income tax.