A Study Was Undertaken to Compare House Prices of Hong

question 8

Multiple Choice

A study was undertaken to compare house prices of Hong Kong to those in Houston. Other than converting currency rates to a common unit, what else needs to be considered to make a valid comparison?

• A) population of each city
• B) net present value of houses
• C) range of house prices
• D) cost of living index

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Definitions:

Disposable Income

The money households have for spending and saving after subtracting income taxes.

Disposable Income

The amount of income left for spending or saving after taxes have been paid.

C + I

Represents the sum of consumer spending (C) and investment spending (I) in an economy's GDP formula.

Capacity Utilization Rate

A metric used to measure the degree to which a firm or economy is operating at its full potential or maximum efficiency.