If Land Use Restrictions in Major Cities Were Relaxed,the

question 16

Multiple Choice

If land use restrictions in major cities were relaxed,the:

• A)supply of houses would decrease.
• B)demand for houses would increase.
• C)supply of houses would increase.
• D)demand for houses would decrease.

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Definitions:

Domestic Firms

Companies that operate primarily within the country of their incorporation, focusing on serving the local market.

Inefficient

Lacking in effectiveness or productivity, resulting in wasted resources or effort without achieving the desired output.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of operation increases, leading to a lower cost per unit.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.