In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is.
B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others.
C) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent.
D) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
D
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When inflation has been persistent, as was the case in the United States during the 1970s, low unemployment rates will likely be associated with
A) low natural rates of unemployment. B) high natural rates of unemployment. C) low but stable rates of inflation. D) high but stable rates of inflation. E) increases in the inflation rate.
The MRP = MFC maximization rule applies to capital just as it does to labor
Indicate whether the statement is true or false