From an Efficiency Standpoint, Rent Controls

question 56

Multiple Choice

From an efficiency standpoint, rent controls:

• A) increase efficiency by allowing those households who could not afford high rents before to be able to purchase housing.
• B) increase efficiency by increasing consumer surplus.
• C) decrease efficiency because both buyers and sellers would be better off if the price of rents were allowed to rise.
• D) decrease efficiency because they make it illegal to trade.

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Definitions:

Living Standards

The magnitude of economic riches, comfort levels, material acquisitions, and basic livable needs assigned to a particular social strata or region.

International Trade

The exchange of goods and services across national borders, influenced by comparative advantages, tariffs, quotas, and agreements.

Seller

An individual or entity that offers a product or service for sale.

Buyer

An individual or organization that purchases goods or services for personal use or for the purpose of resale.