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.

Question

Quizplus · Accepted Answer

Rent control limits the amount of income that landlords can receive from their properties, which gives them less incentive to invest in maintenance and upkeep. Over time, this leads to a decrease in the quality of the housing stock, making it less desirable for renters. This is why some economists compare the effects of rent control to those of aerial bombardment: both cause destruction and disrepair.

Some Economists Compare the Destructiveness of Rent Control to That