Economists Have Argued That Rent Control Is "The Best Way

question 119

Multiple Choice

Economists have argued that rent control is "the best way to destroy a city, other than bombing." Why would economists say this?

• A) They anticipate that low rents will cause low-income people to move into the city, reducing the quality of life for other people.
• B) They anticipate that rent control will benefit landlords at the expense of tenants, increasing inequality in the city.
• C) They anticipate that rent controls will cause a construction boom, which will make the city crowded and more polluted.
• D) They anticipate that rent control will eliminate the incentive to maintain buildings, leading to a deterioration of the city.

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Definitions:

Unconscionable

Describing actions or conditions that are so unfair or immoral that they shock the conscience, often leading to legal invalidation.

Fair Market Value

The price that property would sell for on the open market, reflecting the amount a willing buyer would pay a willing seller when neither is under pressure to buy or sell.

Consideration

In contract law, the value (such as money, an act, or a promise) that is exchanged between parties and is essential for a valid contract.

Selling Drugs

The act of illegally distributing or dispensing controlled substances or prescription medications.