Which of the Following Is a Benefit of Buying a Home

question 85

Multiple Choice

Which of the following is a benefit of buying a home rather than renting?

• A) Real estate taxes and utilities will be fixed.
• B) It reduces the need to carry insurance.
• C) Paying for a home is a good way to force yourself to save.
• D) The entire purchase price of the home can be deducted from taxable income, but this deduction must be spread over at least 15 years.

---

Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to market price.

Consumer Surplus

The contrast between the expected payment by consumers for a good or service and the actual price paid.

Market Supply

The total quantity of a good or service that producers are willing and able to sell at various prices during a given time period.

Market Demand

is the total amount of a product or service that consumers in a market are willing and able to purchase at different prices, during a certain time period.