Suppose the Government Decides That Every Family Should Own Its

question 80

Multiple Choice

Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidize the home-construction industry by giving the home-construction companies $10,000 for every house that they build. As a result of this,

• A)the supply curve of new houses would shift leftward, since it now costs $10,000 more for builders to produce a house.
• B)the demand curve for new houses would shift rightward, since now every family would want to buy a house.
• C)the demand curve for new houses would shift leftward.
• D)the supply curve of new houses would shift rightward, since builders would be willing to produce and sell more houses at each given price.

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Definitions:

Phrenology

The idea (now discredited) that psychological strengths and weaknesses could be precisely correlated to the relative sizes of different brain areas.

Linguistic Performance

The observable use of language in communication; how well an individual can produce spoken or written language in real-life situations.

Linguistic Competence

The subconscious knowledge of grammar that allows a person to use and understand a language.

Linguistic Relativity

The hypothesis that the language one speaks influences and shapes their cognitive processes and worldview.