Rent Controls Are

question 96

Multiple Choice

Rent controls are:

• A) an efficient and equitable way to help the poor.
• B) inefficient, but a pretty good way to solve a serious social problem.
• C) an inefficient way to help the poor in raising their standard of living.
• D) an efficient way to allocate housing.

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Definitions:

Marginal Product Of Labor

The additional output a firm gains from employing one more unit of labor, holding all other inputs constant.

Demand For Labor

The total amount of workers that employers want to hire at a given wage rate and time period.

Opportunity Cost

The loss of potential gain from other alternatives when one option is chosen.

Accounting Profits

The difference between total revenue and explicit costs of a business, calculated using principles of accounting.