One of the Difficulties with an Economic Policy Such as Rent

question 125

Multiple Choice

One of the difficulties with an economic policy such as rent control is that:

• A)policy makers do not consider its secondary effects.
• B)economists disagree about the impacts of the policy.
• C)it is difficult to enforce antidiscrimination laws in the rental market.
• D)it makes landlords wealthy at the expense of renters.
• E)the pressure from landlords has resulted in its repeal in many cities.

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Definitions:

Long Run

In economics, the period in which all inputs can be adjusted, with no fixed costs, allowing for full adjustment to changes in the market.

Industry Supply Curve

A graphical representation showing the total quantity of a good that producers in an industry are willing to supply at various prices.

Individual Supply Curves

Graphical representations that show the relationship between the price of a good and the quantity of the good that a single producer is willing to supply.

Short-run

A period of time in which at least one input is fixed and cannot be changed, affecting the capacity to adjust production levels.