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:

Eighteen Months

A period of time equal to one and a half years.

Note Receivable

A written promise that someone will pay a business a specific sum of money on a specified date or on demand.

Days' Sales in Receivables

A financial ratio that measures the average number of days that receivables remain outstanding before being collected.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is a financial accounting provision made for receivables that may not be collectible, estimating the portion of outstanding receivables likely to be uncollectable.