Identify Which Item Is Not an Advantage of Buying a House

question 32

Multiple Choice

Identify which item is not an advantage of buying a house versus renting.

• A)Increase in equity
• B)Tax advantages
• C)Maintenance
• D)All of the choices are correct.

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Definitions:

Producer Surplus

The distinction between the acceptable selling price for producers of a good or service and the actual price achieved.

Equilibrium

The state in which market supply and demand balance each other, and as a result, prices become stable.

Deadweight Loss

A cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.