A Rent Ceiling Creates a Deadweight Loss

question 103

Multiple Choice

A rent ceiling creates a deadweight loss

• A) if it is set below the equilibrium rent.
• B) if it is set equal to the equilibrium rent.
• C) if it set above the equilibrium rent.
• D) if it decreases the taxes the government collects in the housing market.
• E) never, because if it did create a deadweight loss, the government would not impose it.

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Definitions:

Forbidden Behaviors

Acts that are prohibited or discouraged within a society or group due to cultural, social, or legal norms and values.

Strict Parents

caregivers who enforce rigid rules and expect high levels of obedience and discipline from their children.

Tempted

The feeling or state of being enticed or inclined to do something, often something unwise or wrong.

Entity Theorists

Individuals who believe that traits such as intelligence and talent are fixed and cannot significantly change.