Under a system of rent controls, landlords are more likely to
A) discriminate against middle aged tenants.
B) discriminate against students.
C) discriminate against wealthy tenants.
D) experience high vacancy rates.
E) maintain apartments in better condition.
Question 2
Could an increase in the demand for compact cars give an American automobile producer a comparative advantage in their production?
A) No, because comparative advantage depends entirely on productive capabilities.
B) No, because changes in demand can only affect the price of compact cars.
C) Yes, but only if it leads to a change in the techniques of production.
D) Yes, by making compact-car production more profitable.