Suppose That We Observe Two Comparable Properties That Have Each

question 4

Multiple Choice

Suppose that we observe two comparable properties that have each sold twice within the past two years. Property A sold 24 months ago for $350,000 and Property B sold 18 months ago for $325,000. If the two properties were sold today at $375,000 and $340,000, respectively, estimate the change in market conditions (percentage change in price) per month, assuming we equally weight the two properties in our analysis?

• A) 0.19%
• B) 0.24%
• C) 0.28%
• D) 0.33%

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a given period of time.

Maximize Profits

The process by which a firm chooses its production level and pricing strategy to earn the highest possible profit based on its costs and market demand.

Productivity

An indicator of production effectiveness typically expressed as the proportion of products generated to the resources used in creating them.

Output

The amount of goods or services produced by a company, industry, or economy within a particular period.