Assuming That Investors Seek to Maximize the Return on Their

question 27

Multiple Choice

Assuming that investors seek to maximize the return on their investment, the long-run effect of a national tax on real estate will be to:

• A)reduce the return to investment in real estate only.
• B)reduce the return to investment in all assets.
• C)reduce wages only.
• D)increase the return to all investors.

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Definitions:

Mental World

The realm of an individual's thoughts, feelings, beliefs, and perceptions.

Physical World

The physical world refers to all of the planets, stars, galaxies, and all matter and energy that exists in the universe, as well as all the physical and natural laws that govern them.

Normal Accident

A theory suggesting that complex systems such as nuclear power plants are inherently susceptible to failures, no matter how well they are managed.

Risk Society

A society increasingly preoccupied with the future and also with safety, addressing and managing risks that modernity itself has produced.