The Long-Run Effects of Rent Controls Are a Good Illustration

question 112

Multiple Choice

The long-run effects of rent controls are a good illustration of the principle that

• A)society faces a short-run tradeoff between unemployment and inflation.
• B)the cost of something is what you give up to get it.
• C)people respond to incentives.
• D)government can sometimes improve on market outcomes.

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Definitions:

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Sects

Relatively small religious groups that have branched off from a larger religion, often with distinct beliefs and practices diverging from mainstream traditions.

General Social Survey

A sociological survey conducted in the United States to collect data on demographic characteristics and attitudes covering a wide range of subjects.

Doubt

A feeling of uncertainty or lack of conviction about something, which may lead to questioning beliefs, decisions, or the reliability of information.