Question 1

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

Accepted Answer

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

Question 2

Those that lose 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 lower rent. 
A) all tenants. 
B) those tenants who maintain their apartments. 
C) landlords. 
D) tenants who pay lower rent.

Question 3

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

Accepted Answer

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

Question 4

Rent control is more prevalent in

Accepted Answer

A) cities. 
B) suburbs. 
C) rural areas. 
D) the Midwestern U.S. 
A) cities. 
B) suburbs. 
C) rural areas. 
D) the Midwestern U.S.

Question 5

Figure 35.1
-In Figure 35.1, if rents are controlled then number of apartments that used to be rented that are now no longer rented is

Accepted Answer

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

Question 6

If a landlord can get everyone out of the apartment building and refurbish it they

Accepted Answer

A) must still only charge the rent that they were charging before the repairs. 
B) can charge whatever rent they want, and increase it whenever they want. 
C) can charge whatever rent they want, but it then becomes controlled at a higher rent. 
D) can only charge a refurbishing fee that is also controlled. 
A) must still only charge the rent that they were charging before the repairs. 
B) can charge whatever rent they want, and increase it whenever they want. 
C) can charge whatever rent they want, but it then becomes controlled at a higher rent. 
D) can only charge a refurbishing fee that is also controlled.

Question 7

One result of rent control is the desire by landlords for tenants to leave, so tenants

Accepted Answer

A) simply leave. 
B) have an incentive report all infractions, no matter how minor to the authorities, 
C) have an incentive to perform many repairs for themselves. 
D) have an incentive to offer more rent. 
A) simply leave. 
B) have an incentive report all infractions, no matter how minor to the authorities, 
C) have an incentive to perform many repairs for themselves. 
D) have an incentive to offer more rent.

Question 8

The argument that demand for 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 9

An economist looks at rent controlled prices as an example of a

Accepted Answer

A) price floor. 
B) equilibrium. 
C) price ceiling. 
D) engaged price. 
A) price floor. 
B) equilibrium. 
C) price ceiling. 
D) engaged price.

Question 10

One city that has repealed many of its rent-control laws is

Accepted Answer

A) San Jose. 
B) Boston. 
C) New York. 
D) Miami. 
A) San Jose. 
B) Boston. 
C) New York. 
D) Miami.

Question 11

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

Accepted Answer

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

Exam 35: Rent Control

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

Those that lose from the imposition of rent control are

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

Rent control is more prevalent in

Figure 35.1 -In Figure 35.1, if rents are controlled then number of apartments that used to be rented that are now no longer rented is

If a landlord can get everyone out of the apartment building and refurbish it they

One result of rent control is the desire by landlords for tenants to leave, so tenants

The argument that demand for apartments is inelastic in the short run is based on the idea that

An economist looks at rent controlled prices as an example of a

One city that has repealed many of its rent-control laws is

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

Economics: the Study of Opportunity Cost

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