Economists Generally Recognize That Rent Controls Cause Shortages in Housing

question 189

Multiple Choice

Economists generally recognize that rent controls cause shortages in housing, yet rent controls tend to persist.Why does this occur?

• A)Many people do not understand the effects that controls cause.
• B)Property owners are politically unpopular.
• C)Many persons tend to benefit from rent controls.
• D)All of the above are correct.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Operating Activities

Transactions related to the primary, day-to-day business operations, such as the sale of goods and services.

Accounts Receivable

The money owed to a company by its customers for goods or services delivered on credit but not yet paid for.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.