Rent Controls Create Distortions in the Housing Market By

question 212

Multiple Choice

Rent controls create distortions in the housing market by:

• A) increasing rents received by landlords
• B) raising property values.
• C) encouraging landlords to overspend for maintenance.
• D) discouraging new housing construction.
• E) increasing the supply of housing in the long run.

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Definitions:

Alcoa Case

A landmark antitrust case in which the Aluminum Company of America (Alcoa) was found to have monopolized the production and sale of aluminum, violating the Sherman Act.

Federal Trade Commission

A federal agency established to prevent fraudulent, deceptive, and unfair business practices in the marketplace.

Unfair Practices

Activities or behaviors that are deceptive, unjust, or violate standards of conduct or fairness in business, often subject to legal penalties.

Interlocking Directorates

Occurs when members of a company's board of directors also serve on the boards of one or more other companies, potentially leading to conflicts of interest.