If the Government Imposes Rent Control and It Is Binding

question 104

Multiple Choice

If the government imposes rent control and it is binding:

• A)rent will be set above the equilibrium price.
• B)it may result in some landlords leaving the business because they cannot cover costs.
• C)it will lead to rental units being higher in quality because landlords are guaranteed a high price.
• D)it will create a surplus of housing.

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Definitions:

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Minimum Wage

The lowest legal hourly pay that employers can compensate workers, established by law to ensure a minimum standard of living for employees.

Overtime Pay

Additional compensation awarded to employees for hours worked beyond the standard workweek, often at a higher rate.

Equal Employment Opportunity

A principle that ensures all individuals have a fair chance for employment, without discrimination on the basis of race, gender, age, or other protected characteristics.