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

---

Definitions:

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.

Equilibrium Price

A market condition's price point where the quantity of goods producers wish to sell equals the quantity consumers wish to buy.

Production Functions

A mathematical representation of how inputs are transformed into outputs in the production process.

Variable Factors

Inputs to production that can be adjusted in the short run, such as labor and raw materials.