I am not understanding how D is the correct answer. I actually chose D before blind review, mainly as a gut instinct to look back over later. Upon blind review, I changed my answer to B.
I now understand why B is wrong, as all we know is that many municipalities will choose rent controlled ordinances for short term gain, but there is no way of knowing whether or not they will choose to repeal them when the long-term disadvantages set in.
What I don't understand is how D is not subject to the exact same flaw. I understand that we know that many municipalities will choose rent control ordinances, which in theory would eventually lead to a shortage of rental units, but how can we properly infer that each municipality in that group either does or will actually make it to the point of experiencing that long-term disadvantage? Isn't it possible that they will all repeal the ordinances before shortages become a problem?
Maybe the reasoning is because while it is possible that they repeal before the shortages arise, we should assume that, because they are entirely motivated by the short-term gains, they would not repeal the ordinances before the shortages arise?
If there is a better way of reasoning this out please let me know, thanks! I am probably overthinking this one....
-1 on timed and BR
Q17 really stumped me, I picked C both during timed PT and BR.
In my head, C made sense because it was explaining how invisible hand could be supported by mathematical models, even if the author was only using that support to explain the difficulty of modeling increasing returns.
I think I was looking too narrowly at the paragraph alone, where if you look at the author's argument for the entire passage, the reason the author includes the paragraph at all is to explain that difficulty in modeling increasing returns
I still feel a little unsure about this, so if you have a better way to make sense of 17, let me know!
#help (added by Admin)