One of the Difficulties with an Economic Policy Such as Rent

question 44

Multiple Choice

One of the difficulties with an economic policy such as rent control is that

• A)politicians do not consider its secondary effects
• B)economists disagree about the impacts of the policy
• C)it is difficult to enforce antidiscrimination laws in the rental housing market
• D)it makes landlords wealthy at the expense of renters
• E)pressure from landlords resulted in its repeal in many cities

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Definitions:

Institutional Labor Economics

A branch of economics that studies the way institutions and societal norms impact labor markets, employment, and wage setting.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and easy entry and exit for businesses, leading to optimal distribution of resources.

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A situation in which a person's personal interests could potentially interfere with their professional duties or responsibilities.

Industrial Relations School

A theoretical framework that studies the social, economic, and psychological relations between management and labor, including unions, workplaces, and public policy.