A Recent Decline in Interest Rates Made Home Construction More

question 118

Multiple Choice

A recent decline in interest rates made home construction more affordable for many families.The consequent increase in construction produced a rightward shift in the demand curves for construction materials.Economists would say that the change in demand for materials is due to

• A)the principle of marginal productivity.
• B)rent seeking.
• C)diminishing marginal returns.
• D)derived demand.

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Definitions:

Tranquilizing Drugs

Medications used to reduce tension or anxiety, often by depressing central nervous system activity.

Sympathetic Nervous system

Part of the autonomic nervous system that prepares the body for rapid action in response to stress by accelerating heart rate, dilating pupils, and other physiological changes.

Subjective Experience

Personal interpretations or perceptions of events or situations, influenced by individual emotions, and thoughts.

Intense Anger

A powerful and often overwhelming emotion of displeasure or rage.