Tom Is Planning to Build a Home

question 36

Multiple Choice

Tom is planning to build a home.He is weighing many factors,including construction materials,location,and other considerations.Which of the following statements is true with regard to homeowners insurance and Tom's new home?

• A)The higher the construction costs are in the area,the lower Tom's homeowners insurance premiums will be.
• B)The lower the homeowners deductible selected,the lower the premium will be.
• C)Older homes cost more to insure than newer homes.
• D)A wood frame home costs less to insure than a brick home.

Distinguish between movements along the curve and shifts of the curve for both demand and supply.

Recognize the difference between normal goods, inferior goods, substitutes, and complements.

Analyze the impact of external factors on the demand and supply of goods.

Understand the concept of equilibrium and how it is affected by changes in demand and supply.

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Definitions:

Single Population

Refers to a group or set of entities sharing one or more characteristics, from which data can be collected and analyzed as a unified whole.

Sign Test

A nonparametric test used to determine if there is a significant difference between paired observations.

Matched-Pairs Sample

An experimental design technique in which subjects are paired based on certain criteria, and each pair is treated differently to compare the effects.

Frequency Distributions

A summary of data showing the number (or frequency) of observations in each category of a variable.