The Long-Run Effects of Rent Controls Are a Good Illustration

question 112

Multiple Choice

The long-run effects of rent controls are a good illustration of the principle that

• A)society faces a short-run tradeoff between unemployment and inflation.
• B)the cost of something is what you give up to get it.
• C)people respond to incentives.
• D)government can sometimes improve on market outcomes.

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Definitions:

Fight Or Flight

A physiological response to perceived harmful events, attacks, or threats to survival, triggering a choice to either confront the situation aggressively or flee from it.

General Adaptation Syndrome

A theory by Hans Selye that describes the three stages of response to stress: alarm, resistance, and exhaustion.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or reflection.

Self-Esteem

A person's personal and subjective assessment of their own value in terms of emotions.