Final answer:
The correct statement regarding condominiums and cooperatives is that the entire cooperative may be at risk if an owner defaults. This is because cooperatives involve a shared financial responsibility among owners, contrasting with condo ownership, which is more individualized. Economic factors, including opportunity costs and price ceilings, can influence housing quality and availability.
Step-by-step explanation:
The correct statement regarding condominiums and cooperatives is: If an owner of a cooperative defaults the entire cooperative may be at risk. This is because in a cooperative, a corporation owns the property, and the residents are shareholders who own stock in the corporation which allows them to lease their units. If one shareholder defaults, it can potentially affect the entire cooperative financially. On the other hand, with condominiums, individuals own their specific unit of property plus a share of the common elements. They tend to have more control over the sale or renting of their property, although they must also comply with any bylaws or regulations set by the condominium association.
It's important to note that economic concepts such as opportunity cost play a role in housing. When price ceilings are implemented to keep housing affordable, landlords may respond by converting rental properties into co-ops or condominiums. These conversions can negatively affect some renters, either by reducing the quality of available rentals due to less maintenance or by causing a loss of rental units. This is a consequence of the economic principle that there's no such thing as a free lunch; there are trade-offs with every decision, which is referred to as the opportunity cost.