Multiple Choice Quiz


1	When relevant, rent control laws keep rents
		A)	above equilibrium levels.
		B)	below equilibrium levels.
		C)	at equilibrium levels.
		D)	at profit maximizing levels.


2	Rent control laws are a form of price
		A)	floor.
		B)	ceiling.
		C)	level.
		D)	state.


3	Rent Control laws typically come about when market rents are
		A)	falling quickly.
		B)	rising quickly.
		C)	out of line with equilibrium.
		D)	stable.


4	The losers under rent control include
		A)	long-time renters who keep their apartments.
		B)	renters who live in marginal apartments that are taken off the market.
		C)	landlords.
		D)	b) and c)


5	The magnitude of the loss of rentable apartments that results from rent control depends on
		A)	the elasticity of demand.
		B)	the elasticity of supply.
		C)	the equilibrium level of rent .
		D)	a) and b)


6	The shortage of rentable apartments that results from rent control depends greatly on
		A)	the elasticity of demand.
		B)	the elasticity of supply.
		C)	the equilibrium level of rent.
		D)	a) and b)


7	The _______ that results from rent control is _______ in the long run than in the short run
		A)	shortage; greater
		B)	shortage; smaller
		C)	surplus; greater
		D)	surplus; lesser


8	Rent control laws that have existed for a long time have then unintended effect of
		A)	creating a market for apartments.
		B)	creating a black-market for rent-controlled apartments.
		C)	lowering rents.
		D)	raising rents.


9	Under rent control landlords have an incentive to
		A)	keep apartments well maintained.
		B)	leave apartment maintenance to tenants.
		C)	lower rents to attract new renters.
		D)	a) and c)


10	Economists note that rent control can easily survive in a city even when they can show that society is worse off as a result because
		A)	renters who maintain their voting status (because they continue to live in the area) are made better off because of lower rents.
		B)	demand for apartments becomes upward sloping under rent control.
		C)	supply becomes downward sloping under rent control.
		D)	b) and c)

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