Janet and Tom Were Married in 2000

question 15

Multiple Choice

Janet and Tom were married in 2000. At the time they were married Tom owned a house himself in Ottawa that was worth $300,000 and it had no mortgage. The couple moved into the house and lived together there until 2015 when they decided to divorce. At the time of the divorce the house was then worth $500,000. As a result which of the following statements is TRUE?

• A)the house belongs to Tom and Janet has no claim on it
• B)Janet is entitled to half of the increased value of the house which is $100,000
• C)Janet is entitled to half of the value of the house which is $250,000
• D)the only way Tom could have prevented Janet from having a claim on the house is if they had signed a marriage contract to limit her claim
• E)both C and D are true

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Definitions:

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Price Level

An index that measures the average prices of goods and services in an economy over a period of time.

Given Up

The cost of forgoing the next best alternative when making a decision, also known as opportunity cost.

Looking For Work

The activity engaged in by individuals who are seeking employment, often considered a measure of labor market activity.