Economics: The Basics 1st Edition by Mike Mandel

Exercise 6

Suppose a government owned all the homes in a country, and it assigned housing according to family size and locations of family members' jobs.
a) What would be the advantage of this government-led approach to the housing market, compared to the current method of allowing families to buy or rent wherever they want?
b) What would be the disadvantage of this approach, compared to the current method?
c) Which method would you choose?