Economists in General Agree That Rent Controls Are

question 72

Multiple Choice

Economists in general agree that rent controls are:

• A)an efficient and equitable way to help low-income families.
• B)an inefficient but sometimes effective way to help low-income families.
• C)an efficient method of dealing with the shortages caused by price ceilings.
• D)the only way to solve the problem of poverty.

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Definitions:

Direct Tax

is a type of tax directly imposed on individuals or entities, such as income tax and property tax, which cannot be passed onto others.

Payroll Tax

Charges levied on both employers and employees, typically based on a proportion of the wages that businesses distribute to their workers.

Wage Base

The maximum amount of earnings that is subjected to certain taxes, such as Social Security taxes, within a given time period.

Excise Tax

A tax charged on specific goods and services, such as alcohol and tobacco, usually to discourage their use or generate revenue.