Suppose an Apartment Complex Converts to a Condominium,so That the Former

question 46

Multiple Choice

Suppose an apartment complex converts to a condominium,so that the former renters are now owners of their housing units.Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid.What happens to GDP as a result of this conversion?

• A)GDP necessarily increases.
• B)GDP necessarily decreases.
• C)GDP is unaffected because neither the rent nor the estimate of the value owner-occupied housing services is included in GDP.
• D)GDP is unaffected because previously the rent payments were included in GDP and now the rent payments are replaced in GDP by the estimate of the value of owner occupied housing services.

---

Definitions:

Hygiene Factor

A concept in Herzberg's motivation theory, referring to factors that can cause dissatisfaction if missing but do not necessarily motivate if increased or improved.

Interpersonal Relations

The way in which two or more people interact and communicate with each other in various settings.

Hackman-Oldham Job Enrichment Model

A theory that suggests work can be more satisfying by increasing job responsibility, achievement opportunities, and growth.

High Achievers

Individuals who consistently perform at a high level and excel in achieving their goals or objectives.