Soal Latihan dan Jawaban Reading Comprehension 81

Monday, March 26th, 2012 - reading comprehension

Rent control is the system whereby the local government tells building owners how

much they can charge their tenants in rent. In the United States, rent controls date back

to at least World War II.

 

In 1943 the federal government imposed rent controls to help solve the problem of

(5)      housing shortages during wartime. The federal program ended after the war, but in

some locations, including New York City, controls continued. Under New York’s

controls, a landlord generally cannot raise rents on apartments as long as the tenants

continue to renew their leases. In places such as Santa Monica, California, rent controls

are more recent. They were spurred by the inflation of the 1970’s, which, combined

(10)    with California’s rapid population growth, pushed housing prices, as well as rents, to

record levels. In 1979 Santa Monica’s municipal government ordered landlords to roll

back their rents to the levels charged in 1978. Future rents could only go up by two-thirds

as much as any increase in the overall price level.

 

In any housing market, rental prices perform three functions: (1) promoting the

(15)    efficient maintenance of existing housing and stimulating the construction of new

housing, (2) allocating existing scarce housing among competing claimants, and (3)

rationing use of existing housing by potential renters.

 

One result of rent control is a decrease in the construction of new rental units. Rent

controls have artificially depressed the most important long-term determinant of

(20)    profitability – rents. Consider some examples. In a recent year in Dallas, Texas, with a

16 percent rental vacancy rate but no rent control laws, 11,000 new housing units were

built. In the same year, in San Francisco, California, only 2,000 units were built. The

major difference? San Francisco has only a 1.6 percent vacancy rate but stringent rent

control laws. In New York City, except for government-subsidized construction, the only

(25)    rental units being built are luxury units, which are exempt from controls. In Santa

Monica, California, new apartments are not being constructed. New office rental spare

and commercial developments are, however. They are exempt from rent controls.

Reading Comprehension 81

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Your answers are highlighted below.
Question 1
What does the passage mainly discuss?
A
The shortage of affordable housing in the United States.
B
The construction of apartments in the United States.
C
Causes and effects of rent control
D
The fluctuations of rental prices
Question 2
The word "They" in line 9 refers to
A
places
B
rent controls.
C
the tenants
D
their leases
Question 3
Which of the following was NOT a reason for the introduction of rent controls in Santa Monica, California?
A
Economic conditions during wartime
B
Rapid population growth
C
Record-high housing prices
D
Inflation
Question 4
The phrase "roll back" in lines 11-12 is closest in meaning to
A
reduce
B
credit
C
measure
D
vary
Question 5
The word "stimulating" in line 15 is closest in meaning to
A
experimenting with
B
encouraging
C
estimating
D
identifying
Question 6
It can be inferred that the purpose of rent control is to
A
promote construction
B
protect tenants
C
increase vacancy rates
D
decrease sales of rental units
Question 7
The word "depressed" in line 19 is closest in meaning to
A
saddened
B
defeated
C
lowered
D
created
Question 8
The information in the last paragraph supports which of the following statements?
A
There is a growing need for government-subsidized housing.
B
Luxury apartments are rarely built when there is rent control
C
San Francisco has eliminated its rent control laws.
D
Rent control leads to a reduction in the construction of housing units
Question 9
According to the passage, which of the following cities does NOT currently have rent controls?
A
Santa Monica
B
Dallas
C
San Francisco
D
New York City
Question 10
The word "stringent" in line 23 is closest in meaning to
A
efficient
B
straightforward
C
strict
D
expanded
Question 11
According to the passage, which of the following is NOT exempt from rent control?
A
Office space
B
Commercial development
C
Luxury apartments
D
Moderately priced apartments
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There are 11 questions to complete.
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