Washington, D

question 55

Multiple Choice

Washington, D.C.'s metro train system is being extended further into the neighboring states of Maryland and Virginia, thereby reducing the cost of commuting into the United States' capitol. Other things being held constant, this can be expected to:

• A) decrease the extent of the market for housing around Washington, D.C.
• B) increase the extent of the market for housing around Washington, D.C.
• C) have no effect on the extent of the market for housing around Washington, D.C. as the actual geography remains unchanged.
• D) have no effect on the extent of the market for housing around Washington, D.C. as the range of houses available has not changed.
• E) have no effect on the extent of the market for housing around Washington, D.C. as property taxes have not changed.

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Definitions:

Bonus

An additional compensation awarded to employees as a reward for their performance beyond their usual salary.

Stock Outs

Occurs when an inventory item is not available in stock, leading to potential lost sales.

Office Supplies

Various products and equipment regularly used in offices, such as paper, pens, computers, and desks.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.