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Unless they are used as strictly temporary measures,
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01 Jul 2009, 01:43
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3. Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power. If the statements above are true, which one of the following can be properly inferred from them? (A) It is impossible for landlords to raise rents when rent controls are in effect. (B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise. (C) The only negative effect of tent control for renters is that it brings about a shortage of rental units. (D) In many municipalities there is now, or eventually will be, a shortage of rental units. (E) In the long term, a shortage of rental units will raise rents substantially.
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Re: Unless they are used as strictly temporary measures,
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12 Jul 2009, 11:42
vaivish1723 wrote:
3. Unless they are used as strictly temporary measures, rent-control ordinances (municipal regulations placing limits on rent increases) have several negative effects for renters. One of these is that the controls will bring about a shortage of rental units. This disadvantage for renters occurs over the long run, but the advantage—smaller rent increases—occurs immediately. In many municipalities, specifically in all those where tenants of rent-control units have a secure hold on political power and can get rent-control ordinances enacted or repealed, it is invariably the desire for short-term gain that guides those tenants in the exercise of that power. If the statements above are true, which one of the following can be properly inferred from them? (A) It is impossible for landlords to raise rents when rent controls are in effect. (B) In many municipalities rent-control ordinances are repealed as soon as shortages of rental unites arise. (C) The only negative effect of tent control for renters is that it brings about a shortage of rental units. (D) In many municipalities there is now, or eventually will be, a shortage of rental units. (E) In the long term, a shortage of rental units will raise rents substantially.
(A) Extreme answer; contradicts original info - small increases does not mean "NO" increases. (B) The info does not tell us what happens after a shortage occurs. (C) Contradicts original info - shortage is one of SEVERAL negative effects. (E) Again, the info does not tell us what happens after a shortage occurs.
(D) Not a particularly strong answer, but by POE its the one that's left, so it'll have to do.
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Re: Unless they are used as strictly temporary measures, [#permalink]