If the typical home in Des Moines were located in San Francisco, it would probably
A. command the same price, since it is still just a typical house.
B. command a higher market price.
C. be at lower risk for earthquake damage.
D. command a lower market price.
Answer: B
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An industry's output is produced at the lowest possible cost when
a. firms' marginal costs are equal. b. firms minimize their average costs. c. all firms earn the same profit. d. output is evenly divided among the industry's firms.
Countries that engage in trade will tend to specialize in the production of goods and services in which they have ________ and will ________ these goods and services
A) a comparative advantage; export B) a comparative advantage; import C) an absolute advantage; import D) an absolute advantage; export
The four-firm concentration ratio of the aircraft industry is over 80 percent. Most economists would consider this industry an oligopoly
Indicate whether the statement is true or false
The CPI differs from the GDP deflator in that
a. the CPI is a price index, while the GDP deflator is an inflation index. b. substitution bias is not a problem with the CPI, but it is a problem with the GDP deflator. c. increases in the prices of foreign produced goods that are sold to U.S. consumers show up in the CPI but not in the GDP deflator. d. increases in the prices of domestically produced goods that are sold to the U.S. government show up in the CPI but not in the GDP deflator.