Author Question: Rent controls are A) when rents are set above the market clearing level to aid landlords. B) ... (Read 119 times)

natalie2426 · **on:** Jun 29, 2018

Rent controls are

A) when rents are set above the market clearing level to aid landlords.
B) used to provide incentives to contractors to build new apartments.
C) used to generate revenue for the local government.
D) when rents are set below the market clearing level.

Question 2

Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?

What will be an ideal response?

ambernicolefink · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

This is because consumption goods are for current satisfaction but capital goods are goods that can be used for producing consumption goods in the future. Society that reduces the production of consumption goods in favor of capital goods will result in more consumption goods in the future.