In Your City, It Is Illegal to Charge More Than

question 135

Multiple Choice

In your city, it is illegal to charge more than a certain amount of money for an apartment. People have been signing leases for the highest legal amount, but also agreeing to pay a monthly bribe "on the side" to their landlord in order to get the apartment in the first place and to get timely maintenance. What is the effect of the bribes?

• A) The bribes make it harder to find an apartment.
• B) The bribes cause there to be unexploited gains from trade.
• C) The bribes cause apartments to be allocated to renters who do not have the highest-valued use of the apartments.
• D) The bribes minimize the damage from the rent control.

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Definitions:

Visuospatial Skills

Abilities related to understanding, perceiving, and manipulating objects and visual images in spatial relationships.

Prefrontal Cortex

The frontal part of the brain's cerebral cortex, critical for decision making, social behavior, personality expression, and moderating complex cognitive behavior.

Grey Matter

A major component of the central nervous system, consisting mostly of neuronal cell bodies, dendrites, and unmyelinated axons, associated with processing and cognition.

White Matter

The part of the brain and spinal cord composed of myelinated nerve fibers that is responsible for transmitting information between brain regions and between the brain and the spinal cord.