Which of the Following Costs Associated with Home Ownership Is

question 59

Multiple Choice

Which of the following costs associated with home ownership is hardest to budget?

• A) Insurance
• B) Taxes
• C) Repairs
• D) Mortgage payments

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Definitions:

Law of Diminishing Marginal Returns

A principle stating that adding an additional factor of production results in smaller increases in output after a certain point, holding other inputs constant.

Variable Input

An input used in production that can be adjusted in the short term, such as labor or raw materials.

Short Run

A period in which at least one input or resource is fixed, limiting the capacity to adjust all factors of production.

Increasing Returns

The situation in which output increases by a larger proportion than the increase in inputs used in production.