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:

Compensation

Payment or reward given for services or to cover losses or damages, often relating to employment.

Remuneration

Compensation or payment received for services or employment, including wages, salaries, and bonuses.

Time-and-A-Half

A pay rate that is 1.5 times the employee's standard hourly rate, typically paid for overtime work.

Graduated Commission

A commission structure where the rate of commission increases with the amount of sales or revenue generated.