Which statement(s) is TRUE?
I. Rent controls prevent apartments from being allocated to people who value them the most.
II. With a system of rent controls, landlords are more likely to make needed repairs to their properties as a way of attracting renters.
III. Although inefficient, rent controls are the best way to help the poor afford housing.
A) I only
B) I and III only
C) I, II, and III
D) II and III only

Question

Quizplus · Accepted Answer

Statement I is true, as rent controls force landlords to charge below market rates which means that some renters who value the apartment highly may not be able to rent it as they are unable to pay above the controlled rent. Statement II is not necessarily true, as landlords may not have the financial incentive to make repairs if they cannot charge higher rents to cover the costs. Statement III is false, as there are alternative policies, such as housing vouchers, that are more efficient and targeted towards helping the poor afford housing.

Which Statement(s) Is TRUE