Economists Generally Recognize That Rent Controls Cause Shortages in Housing

question 189

Multiple Choice

Economists generally recognize that rent controls cause shortages in housing, yet rent controls tend to persist.Why does this occur?

• A)Many people do not understand the effects that controls cause.
• B)Property owners are politically unpopular.
• C)Many persons tend to benefit from rent controls.
• D)All of the above are correct.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, often improving on simple tasks and performing poorly on complex tasks.

Shock Experiments

Psychological experiments studying reactions to distressing situations, often associated with studies on obedience and learning.

Milgram

Refers to a series of social psychology experiments conducted by Stanley Milgram, which demonstrated people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.

Obedience Level

The extent to which individuals comply with the commands or orders from authority figures.