The Expected Costs to Make Replacements, Alterations, or Improvements to a Building

question 22

Multiple Choice

The expected costs to make replacements, alterations, or improvements to a building that materially prolong its life and increase its value is referred to as:

• A) operating expenses
• B) capital expenditures
• C) vacancy losses
• D) collection losses

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Definitions:

Cyclical Unemployment

Unemployment that is linked to the cyclical trends in the economy, typically increasing during recessions and decreasing during expansions.

Economy

The system by which goods and services are produced, distributed, and consumed within a particular country or area.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Labor Force Participation Rate

The percentage of the total working-age population that is active in the labor market, either employed or actively seeking employment.