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# Municipal imposition of rent controls, designed to hold

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Senior Manager
Joined: 15 Aug 2005
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Location: Las Vegas, NV
Municipal imposition of rent controls, designed to hold [#permalink]

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03 Sep 2005, 17:23
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Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 1 sessions

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Municipal imposition of rent controls, designed to hold rents down during periods of housing shortages, can protect tenants from paying inordinate amounts of rent for decent housing. But in an era of rapid inflation, high costs for fuel and maintenance can pose severe financial strains on landlords with fixed rent rolls. During such periods of economic hardship most landlords chose to defer all but the most vital building repairs before eliminating their own profit margin.

Which of the following offers the most appropriate conclusion to the author's argument?

A) Decent housing is thus a relative concept, determined by individuals chosing among options circumscribed by economic and technological factors in a society.

B) Landlords, who are generally opposed to rent control because it inhibits their ability to make a profit, should therefore defer maintenance in order to draw attention to what they deem unfair municipal regulations.

C) The construction of new housing would be a far more effective solution to shortages in available of housing than the imposition of rent controls.

D) Clearly, no solution in the struggle over higher or lower rents will please both landlord and tenant, and it is time that landlords adjust their concept of adequate profit margins.

E) Rent control, which is intended to sustain fair market rents when decent housing is hard to find, can thus have the effect of actually lowering the quality of city housing.

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Manager
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03 Sep 2005, 18:14
e?

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Director
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03 Sep 2005, 18:41
E it is.
_________________

Cheers, Rahul.

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SVP
Joined: 05 Apr 2005
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03 Sep 2005, 18:45
E should be correct.

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Manager
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03 Sep 2005, 20:03
E sounds logical!
_________________

Thanks!

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Director
Joined: 03 Nov 2004
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03 Sep 2005, 20:04
One more for E

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VP
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04 Sep 2005, 01:38
E too

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Intern
Joined: 31 Aug 2005
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04 Sep 2005, 03:56
I think "E"

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Senior Manager
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04 Sep 2005, 09:47
Good to know that I'm not the only one who got this one wrong.

The OA is B. Here's the OE:

This is a peculiar kind of inference question that asks you to finish the author's thought. The key in any inference is to stick closely to the scope and tone of the stimulus. The scope here is the effect of rent controls on landlords management of their properties. B follows from this scope, focusing on a course of action for landlords in response to rent controls. E sounds very good until the last few words.

Can anyone provide a better explanation why E doesn't work?

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Senior Manager
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04 Sep 2005, 10:28
i am with E as well, but after reading the OA , E seem to be rather broad and out of score, also B is more narrow to the issue of defering maintance costs which is within the score of the premise. thats a tough Q i guess one could make the same arguement for E. i still believe that E is a better choice.

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04 Sep 2005, 10:28
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