Which of the Following Is an Example of the Unfairness

question 88

Multiple Choice

Which of the following is an example of the unfairness of rent control?

• A) Voluntary exchange is encouraged by rent control.
• B) Racial discrimination in renting is discouraged by rent control.
• C) Newcomers have a more difficult time finding apartments.
• D) Rich people do not get apartments in these markets.
• E) Too many people rent apartments.

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Definitions:

ATC

Average Total Cost; the total cost per unit of output incurred when producing goods or services.

AVC

Average Variable Cost, the cost that varies with the level of output, divided by the quantity of output produced.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced; these costs are incurred even if production is zero.