How Are Housing Starts, or New Construction, Used to Gauge

question 18

Multiple Choice

How are housing starts, or new construction, used to gauge the national economy?

• A) Construction of apartments instead of single family homes indicates less money available in the economy.
• B) Declines in housing starts are often one of the first signs of an approaching economic downturn.
• C) Building supplies are the most profitable industry in the nation.
• D) Decreases in demand for single-dwelling homes usually indicate a higher demand for condominiums and other multiunit construction.
• E) Decreases in the average price of new homes indicate a strong economy.

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Definitions:

Marx

Karl Marx, a 19th-century philosopher, economist, and socialist, known for his critique of capitalism and theory of historical materialism.

Class Analysis

The study of the social and economic divisions within society, particularly regarding social class and inequality.

Stratification

The arrangement or classification of society into layers or classes based on factors like wealth, occupation, or race.

Sociology

The systematic study of human behavior in social context.