Suppose Again the Government Offers Poor People a Housing Voucher

question 48

Multiple Choice

Suppose again the government offers poor people a housing voucher and units of housing is graphed on the x-axis and the composite good is graphed on the y-axis. The consumer will always choose to consume the exact amount of the housing voucher's units of housing when:

• A)the consumer's indifference curves are everywhere steeper than the budget line.
• B)the consumer chooses to move into a better school district for educational purposes.
• C)the housing voucher causes the budget line to shift toward the origin.
• D)the consumer's indifference curves are flatter (closer to horizontal)than the budget line where it slopes downward.

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Definitions:

R-squares

A statistical measure in finance that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Portfolio Performance

The assessment of how an investment portfolio has done in terms of returns for the risk taken, often compared against benchmarks or goals.

Treynor-Black Model

A special case of the Markowitz model of efficient diversification, derived by assuming returns are generated by the index model.

Residual Variance

The variance of the error terms in a regression model, representing the amount of variation that cannot be explained by the model's inputs.