When a Rent Ceiling Below the Equilibrium Rent Is Put

question 227

Multiple Choice

When a rent ceiling below the equilibrium rent is put in place,the outcome is

• A) efficient because marginal benefit equals marginal cost.
• B) inefficient because marginal benefit equals marginal cost.
• C) inefficient because marginal benefit is greater than marginal cost.
• D) inefficient because marginal benefit is less than marginal cost.
• E) efficient because marginal benefit is greater than marginal cost.

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Definitions:

Extraverted Thinking

A cognitive style characterized by decision-making based on external criteria and logically derived solutions.

Logical

Characterized by clear, sound reasoning or a coherent form of thought based on premises which leads invariably to a conclusion.

Society's Rules

The norms, laws, and conventions established by a community or society that dictate acceptable and expected behaviors within that society.

Objective

Unbiased and not influenced by personal feelings or opinions in considering and representing facts.