Yvette buys and sells real estate. Two weeks ago, she paid $300,000 for a house on Pine Street, intending to spend $50,000 on repairs and then sell the house for $400,000 . Last week, the city government announced a plan to build a new landfill on Pine Street just down the street from the house Yvette purchased. As a result of the city's announced plan, Yvette is weighing two alternatives: She
can go ahead with the $50,000 in repairs and then sell the house for $290,000 . or she can forgo the repairs and sell the house as it is for $250,000 . She should
a. keep the house and live in it.
b. go ahead with the $50,000 in repairs and sell the house for $290,000.
c. forgo the repairs and sell the house as it is for $250,000.
d. move the house from Pine Street to a more desirable location, regardless of the cost of doing so.
c
You might also like to view...
One of the main determinants of real GDP per person is the growth of capital per person. Which of the following variables does NOT determine the growth of capital per person in the long run?
A) average saving rate B) output-to-capital ratio C) marginal tax rate on investment D) depreciation rate
A quota is
A. An elimination of trade to nurture an infant industry. B. A prohibition against trading a good. C. A limit on the quantity of a good that may be imported in a given time period. D. A tax imposed on imported goods.
How is a 401(k) plan taxed?
A. A 401(k) plan is not taxed at all. B. 401(k) contributions are taxed when workers make their contributions, and grow tax-free until retirement. C. Contributions to a 401(k) plan are taxed at the time the contribution is made, and again when the money is withdrawn from the account after retirement. D. A 401(k) plan is taxed when workers withdraw money from the account to pay for retirement expenses.
The long-run aggregate supply curve assumes that
A. there is no government purchasing of goods and services. B. all factors of production are fully employed. C. the unemployment rate is more than 9 percent. D. only laborers are fully employed.