Which Statement(s) Is TRUE

question 58

Multiple Choice

Which statement(s) is TRUE?
I. Rent controls prevent apartments from being allocated to people who value them the most.
II. With a system of rent controls, landlords are more likely to make needed repairs to their properties as a way of attracting renters.
III. Although inefficient, rent controls are the best way to help the poor afford housing.

• A) I only
• B) I and III only
• C) I, II, and III
• D) II and III only

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Definitions:

Labor

The combined physical and mental exertion employed in creating goods and services.

Marginal Physical Product

The change in total physical output that results from a one-unit increase in the quantity of one input, holding other inputs constant.

Marginal Revenue Product

The extra income derived from the use of an additional unit of a resource or input in production.

Input

Resources such as labor, materials, and capital that are used in the production process to create goods and services.