Question 1

A sure sign of the existence of an underground market for rent-controlled apartments in New York City is that

Accepted Answer

A) rents are high. 
B) apartment dealers work alongside drug dealers on its city streets. 
C) some apartments are subleased from the dead. 
D) an open bribe must be paid to the mayor to get a rent controlled apartment. 
A) rents are high. 
B) apartment dealers work alongside drug dealers on its city streets. 
C) some apartments are subleased from the dead. 
D) an open bribe must be paid to the mayor to get a rent controlled apartment. C

Question 2

If the rent controlled rent is above the equilibrium the result will be

Accepted Answer

A) that landlords will charge more than the equilibrium rent. 
B) a shortage of rental apartments. 
C) a surplus of rental apartments. 
D) nothing different than if there were no rent control. 
A) that landlords will charge more than the equilibrium rent. 
B) a shortage of rental apartments. 
C) a surplus of rental apartments. 
D) nothing different than if there were no rent control. D

Question 3

Rent control continues to survive despite its flaws because

Accepted Answer

A) those not displaced by the policy are beneficiaries of the policy and vote to keep it. 
B) economists generally favor it. 
C) landlords like it's simplicity. 
D) it creates economic growth in a city. 
A) those not displaced by the policy are beneficiaries of the policy and vote to keep it. 
B) economists generally favor it. 
C) landlords like it's simplicity. 
D) it creates economic growth in a city. A

Question 4

A sure sign of the existence of an underground market for rent-controlled apartments in New York City is that

Accepted Answer

A) rents are high. 
B) apartment dealers work alongside drug dealers on its city streets. 
C) though 60% of the city's apartments are rent-controlled only 3% of the apartment ads in newspaper are for rent-controlled apartments. 
D) an open bribe must be paid to the mayor to get a rent controlled apartment. 
A) rents are high. 
B) apartment dealers work alongside drug dealers on its city streets. 
C) though 60% of the city's apartments are rent-controlled only 3% of the apartment ads in newspaper are for rent-controlled apartments. 
D) an open bribe must be paid to the mayor to get a rent controlled apartment.

Question 5

Rent control laws typically are established when

Accepted Answer

A) rents are rising very quickly. 
B) rents are stable but at a low level. 
C) rents are stable but at a high level. 
D) rents are falling very quickly. 
A) rents are rising very quickly. 
B) rents are stable but at a low level. 
C) rents are stable but at a high level. 
D) rents are falling very quickly.

Question 6

The degree to which rent controls affect the market for apartments depends on

Accepted Answer

A) supply elasticity. 
B) the intent of the lawmakers. 
C) demand elasticity. 
D) A and C 
A) supply elasticity. 
B) the intent of the lawmakers. 
C) demand elasticity. 
D) A and C

Question 7

Those that lose from the imposition of rent control are

Accepted Answer

A) all tenants. 
B) taxpayers. 
C) those tenants who lose their apartments. 
D) tenants who pay lower rent. 
A) all tenants. 
B) taxpayers. 
C) those tenants who lose their apartments. 
D) tenants who pay lower rent.

Question 8

Figure 35.1
-In Figure 35.1, if rents are uncontrolled then the amount that landlords will want to rent will be

Accepted Answer

A) 0 
B) Q' 
C) Q* 
D) Q" 
A) 0 
B) Q' 
C) Q* 
D) Q"

Question 9

A price ceiling is a price

Accepted Answer

A) above which a seller may not charge. 
B) below which a buyer may not pay. 
C) below which a seller may charge. 
D) set by the market. 
A) above which a seller may not charge. 
B) below which a buyer may not pay. 
C) below which a seller may charge. 
D) set by the market.

Question 10

Rent control continues to survive despite its flaws because

Accepted Answer

A) those displaced by the policy do not live in the community and cannot vote to end it. 
B) economists generally favor it. 
C) landlords like it's simplicity. 
D) it creates economic growth in a city. 
A) those displaced by the policy do not live in the community and cannot vote to end it. 
B) economists generally favor it. 
C) landlords like it's simplicity. 
D) it creates economic growth in a city.

Question 11

The argument that supply for apartments is more elastic in the long run is based on the idea that

Accepted Answer

A) it is costly to move to a different location. 
B) it takes time to refurbish existing apartments or build new ones. 
C) people will change apartments quickly when there are small changes in rent. 
D) landlords will rent only what they have. 
A) it is costly to move to a different location. 
B) it takes time to refurbish existing apartments or build new ones. 
C) people will change apartments quickly when there are small changes in rent. 
D) landlords will rent only what they have.

Question 12

Elasticity of demand and elasticity of supply for apartments is greatest in

Accepted Answer

A) the long run. 
B) the short run. 
C) the intermediate period. 
D) rural areas. 
A) the long run. 
B) the short run. 
C) the intermediate period. 
D) rural areas.

Question 13

The degree to which rent controls affect the market for apartments depends on

Accepted Answer

A) the number of years the rent control law has been in effect. 
B) the rules given within the law for rent increases. 
C) the intent of the lawmakers. 
D) both A and B 
A) the number of years the rent control law has been in effect. 
B) the rules given within the law for rent increases. 
C) the intent of the lawmakers. 
D) both A and B

Question 14

Figure 35.1
-In Figure 35.1, if rents are controlled so that they may go no higher than Rmax, the amount that landlords will want, will be

Accepted Answer

A) 0 
B) Q' 
C) Q* 
D) Q" 
A) 0 
B) Q' 
C) Q* 
D) Q"

Question 15

The shortage that results from rent control will be smaller

Accepted Answer

A) in the short run. 
B) in the long run. 
C) when demand is more inelastic. 
D) B and C 
A) in the short run. 
B) in the long run. 
C) when demand is more inelastic. 
D) B and C

Question 16

The argument that supply of apartments is inelastic in the short run is based on the idea that

Accepted Answer

A) it is costly to move to a different location. 
B) it takes time to build new apartments. 
C) people will change apartments quickly when there are small changes in rent. 
D) landlords will fix up many new apartments when there are small changes in rent. 
A) it is costly to move to a different location. 
B) it takes time to build new apartments. 
C) people will change apartments quickly when there are small changes in rent. 
D) landlords will fix up many new apartments when there are small changes in rent.

Question 17

The shortage that results from rent control will be greater

Accepted Answer

A) in the short run. 
B) in the long run. 
C) when demand is more elastic. 
D) B and C 
A) in the short run. 
B) in the long run. 
C) when demand is more elastic. 
D) B and C

Question 18

Those that gain from the imposition of rent control are

Accepted Answer

A) all tenants. 
B) those tenants who maintain their apartments. 
C) landlords. 
D) tenants who pay higher rent. 
A) all tenants. 
B) those tenants who maintain their apartments. 
C) landlords. 
D) tenants who pay higher rent.

Question 19

When renters are faced with higher rent demands by landlords they

Accepted Answer

A) must simply pay the higher rent, having no alternatives. 
B) can move costlessly, thereby escaping the higher rent. 
C) can move, but such a move costs renters time and money. 
D) must ask permission of their landlord to leave. 
A) must simply pay the higher rent, having no alternatives. 
B) can move costlessly, thereby escaping the higher rent. 
C) can move, but such a move costs renters time and money. 
D) must ask permission of their landlord to leave.

Question 20

The elasticity of demand for apartments is greatest when

Accepted Answer

A) there are few neighboring towns/suburbs in which to live. 
B) there are many neighboring towns/suburbs in which to live. 
C) local politicians are religious. 
D) there are other price controls in towns besides on rent. 
A) there are few neighboring towns/suburbs in which to live. 
B) there are many neighboring towns/suburbs in which to live. 
C) local politicians are religious. 
D) there are other price controls in towns besides on rent.

Exam 35: Rent Control

A sure sign of the existence of an underground market for rent-controlled apartments in New York City is that

If the rent controlled rent is above the equilibrium the result will be

Rent control continues to survive despite its flaws because

A sure sign of the existence of an underground market for rent-controlled apartments in New York City is that

Rent control laws typically are established when

The degree to which rent controls affect the market for apartments depends on

Those that lose from the imposition of rent control are

Figure 35.1 -In Figure 35.1, if rents are uncontrolled then the amount that landlords will want to rent will be

A price ceiling is a price

Rent control continues to survive despite its flaws because

The argument that supply for apartments is more elastic in the long run is based on the idea that

Elasticity of demand and elasticity of supply for apartments is greatest in

The degree to which rent controls affect the market for apartments depends on

Figure 35.1 -In Figure 35.1, if rents are controlled so that they may go no higher than Rmax, the amount that landlords will want, will be

The shortage that results from rent control will be smaller

The argument that supply of apartments is inelastic in the short run is based on the idea that

The shortage that results from rent control will be greater

Those that gain from the imposition of rent control are

When renters are faced with higher rent demands by landlords they

The elasticity of demand for apartments is greatest when

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

Filters

Figure 35.1 -In Figure 35.1, if rents are controlled so that they may go no higher than R_max, the amount that landlords will want, will be