What is the most likely effect of legislated rent controls on the rental vacancy rate in an area adopting such controls?
A) The vacancy rate will not change because rent controls don't change the demand (curve) for housing.
B) The vacancy rate will rise because owners will be less eager to have tenants in their buildings.
C) The vacancy rate will fall because rent controls create a shortage situation.
D) The vacancy rate will become wholly arbitrary and unpredictable because allocation decisions will have to be made by political rather than economic criteria.
C
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When people who are holding the money of some other country want to exchange it for U.S. dollars, they ________ U.S. dollars and ________ that other country's money
A) demand; supply B) supply; supply C) supply; demand D) demand; demand
The problem of asymmetric information is that:
A. neither health care buyers nor providers are well-informed. B. health care providers are well-informed, but buyers are not. C. the outcomes of many complex medical procedures cannot be predicted. D. insurance companies are well-informed, but policy purchasers are not.