Which of the Following Statements Would Most Economists Agree With

question 22

Multiple Choice

Which of the following statements would most economists agree with?

• A)Rent controls hurt everyone.
• B)Rent controls hurt poor people and help the rich.
• C)Rent controls decrease overall societal welfare.
• D)Rent control allow for a more equitable distribution of resources.

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Definitions:

Deadweight Loss

Deadweight loss is an economic inefficiency resulting from a disparity between supply and demand, often caused by market interventions like taxes or price controls, resulting in potential benefits not realized by any party.

Tax Revenue

The total amount of money collected by the government from taxes, which is then used for public expenditures.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, usually with the aim of reducing consumption or raising revenue.