If the Government Decides to Pay Producers of Houses $5,000

question 65

Multiple Choice

If the government decides to pay producers of houses $5,000 for every house they build,

• A)the opportunity cost of producing a house will fall.
• B)demand for housing will increase.
• C)housing will no longer be scarce.
• D)consumers will buy more houses, even if the price does not fall.
• E)producers will be willing to build more houses, even if the price does not rise.

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development where children aged 7-11 start thinking logically about concrete events but have difficulty understanding abstract or hypothetical concepts.

Gravity

A fundamental physical force that attracts two bodies towards each other, responsible for the motion of planets, stars, and other celestial objects.

Cognitive Skills

Mental abilities that enable learning, thinking, reasoning, and problem-solving.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development and his theory of cognitive development.