Rent Control Applies to About Two-Thirds of the Private Rental

question 158

Multiple Choice

Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that the below-equilibrium prices established by rent controls would

• A) create a surplus of rental housing.
• B) promote a rapid increase in the future supply of housing.
• C) result in poor service and quality deterioration of many rental units.
• D) lead to a reduction in housing discrimination against minorities.

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Definitions:

Status Variables

Variables that categorize individuals based on conditions or characteristics at a specific time.

Type I Errors

Incorrectly rejecting a true null hypothesis, also known as a "false positive" finding in research.

Type II Errors

An error that occurs in statistical hypothesis testing when a false null hypothesis is not rejected, misinterpreting the absence of an effect or difference when one actually exists.

Independent Variable

A variable that is manipulated in an experiment to determine its effect on the dependent variable.