Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this?
a. They anticipate that low rents will cause low-income people to move into the city, reducing the quality of life for other people.
b. They anticipate that rent control will benefit landlords at the expense of tenants, increasing inequality in the city.
c. They anticipate that rent controls will cause a construction boom, which will make the city crowded and more polluted.
d. They anticipate that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.
D
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The purchasing power of farmers is determined by the
a. quantity of farm goods that a dollar can buy b. quantity of nonfarm goods that a dollar can buy c. quantity of nonfarm goods that a unit of farm goods can buy d. subsidies farmers receive from the government in the form of price ceilings on farm goods e. ratio of their incomes to the incomes of nonfarm producers
The government is considering levying a tax on the pollution generated from two electric power plants (Plant A and Plant B). Plant A is located in a city with a high density of population, and Plant B is located in the rural area with a low density of
population. The government should A) levy the same tax per unit of pollution on both plants. B) levy a higher tax per unit of pollution on Plant A because of its higher economic damage. C) levy a higher tax per unit of pollution on Plant B because of its lower economic damage. D) tax only Plant A but not Plant B because Plant B generates less revenue.