A Primary Determinant of the Feasibility of New Construction Is

question 18

Multiple Choice

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction. We would expect the supply of properties to:

• A) increase if current property values are greater than the cost of construction
• B) decrease if current property values are greater than the cost of construction
• C) increase if current property values equal the cost of construction
• D) decrease if current property values equal the cost of construction

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Definitions:

Reasonable Consumer

A legal standard referring to a hypothetical person who is considered average or typical from the perspective of the consumer population, used in cases related to consumer protection and advertising.

Mislead

To guide someone into a wrong direction or give someone a wrong idea or impression.

Cooling-Off Rule

A federal regulation allowing consumers a set period of time to cancel contracts or purchases made at home or at locations other than the normal business premises of a company.

Federal Trade Commission

A federal agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.