Buying Your Own Home Is Often Mentioned as "The Best

question 89

Multiple Choice

Buying your own home is often mentioned as "the best investment you can make." In 1930, the average home sale price was $3,845. By 1990, that figure had risen to $123,000. What was the average annual rate of change in the price of houses over this time period?

• A) 3.42% per year
• B) 5.95% per year
• C) 10.12% per year
• D) 12.36% per year

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Definitions:

Exclusive Franchise

A business arrangement granting a single entity the right to market a company's goods or services within a specified territory.

Deregulation

The process of reducing or eliminating government controls or restrictions on industries to promote efficiency and competition.

Industrial Regulation

Policies and rules implemented by governments to control or manage the activities, standards, and behaviors of industries and their participants.

Net Benefits

The net gain from a decision or action, calculated by subtracting the total costs from the total benefits.