Some Economists Compare the Destructiveness of Rent Control to That

question 279

Multiple Choice

Some economists compare the destructiveness of rent control to that of aerial bombardment because it causes:

• A) landlords to neglect their buildings, allowing them to deteriorate over time.
• B) high search costs in apartment hunting.
• C) there to be unexploited gains from trade.
• D) apartments to go to renters who do not have the highest-valued use of the apartments.

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Definitions:

Preemptive Rights

Legal rights that allow existing shareholders the opportunity to buy additional shares before the company offers them to the general public.