When Prices of New Houses Rise Significantly Faster Than Rent

question 78

Multiple Choice

When prices of new houses rise significantly faster than rent prices,this is evidence of a

• A) debt-deflation process.
• B) bubble.
• C) financial crisis.
• D) sovereign debt crisis.

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Definitions:

Porter

Michael Porter, a renowned economist known for his theories on economics, business strategy, and competitive advantage.

Industry

The sector of an economy that is concerned with production and manufacturing of goods, or provision of services.

Entry Barriers

Obstacles that prevent new competitors from easily entering an industry or area of business.

Competitors

Other businesses or individuals that offer similar products or services within the same market, competing for the same set of customers.