A Rent Ceiling Results in a Shortage

question 118

Multiple Choice

A rent ceiling results in a shortage. As a result, which of the following do you expect?

• A) Discrimination as tenants choose their landlords, possibly based on race, age or gender
• B) A black market for apartments whereby higher rents are obtained through various other charges
• C) In the long run, more and more people will want to become landlords
• D) A shortage of applicants for the apartments available

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Definitions:

Pension Benefit Guarantee Corporation

A U.S. federal agency that protects the pension benefits in private-sector defined benefit plans if the company fails to meet its pension obligations.

Stock Market

A public market for the trading of company stock and derivatives at an agreed price; it is a key indicator of the health of an economy.

Unpaid Leave

A period of time that an employee is allowed to be away from work without pay, often for personal, family, or medical reasons.

Employee Benefit

Compensation provided to employees in addition to their normal wages or salaries, such as health insurance, retirement plans, paid vacation, and life insurance.