Describe the intended effects of the first-time home buyer tax credits granted by Congress and many state governments in 2009 and 2010. In addition, describe in detail the unintended effect of this type of legislation
The bills were intended to stimulate the economy, encourage home ownership, help the real estate market, and create jobs in residential construction and related industries. An unintended effect of the tax credits was an increase in the demand for housing. This shifted the demand for housing curve rightward, which raise the price of housing.
You might also like to view...
Who wrote the following criticism of European colonial expansion into poorer non-European nations? "The superiority of force happened to be so great on the side of the Europeans, that they were enabled to commit with impunity every sort of injustice
in those remote countries." A) Adam Smith B) Karl Marx C) Alfred Marshall D) John Maynard Keynes E) John Kenneth Galbraith
Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, and Winnie maximizes his profit when he employs 3 workers, the wage rate is
A) $25 per day. B) $30 per day. C) $70 per day. D) $50 per day.
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income dramatically decreases b. if the opportunity cost of your time decreases c. the less knowledge and experience in plumbing repair work that you possess d. if you already own the specialized tools required to complete the repair work e. as the transaction cost of the do-it-yourself repair work increases
Consider the following hypothetical difference-in-differences results concerning the average of hours worked in "big-box stores" between North and South Dakota before and after North Dakota increased its minimum wage. Average Weekly Hoursper Big-Box Establishment North Dakota South DakotaBefore ND minimum wage increase: 128.4 110.3 After ND minimum wage increase: 114.6 108.2 The minimum wage increase is associated with average hours of work decreasing by how much per week in North Dakota relative to South Dakota?
A. 20.2 hours B. 11.7 hours C. 2.1 hours D. 15.9 hours E. 13.8 hours