Figure 5-3 Shows a Family's Preferences for Housing and Other

question 73

Multiple Choice

Figure 5-3 shows a family's preferences for housing and other goods.Refer to Figure 5-3.Suppose the government offered public housing that provided exactly B0 units of housing services to a low-income family.The public housing unit:

• A)is provided by the government at a cost of $TB.
• B)allows the family to reach a higher indifference curve but causes the family to consume more housing than an equal-sized cash transfer.
• C)increases the level of housing consumption by the same amount as an equal-sized cash transfer.
• D)causes the family to consume less housing than before the fixed-quantity subsidy.

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Definitions:

Los Angeles

A major city located in southern California, USA, known for its entertainment industry, cultural diversity, and significant economic and demographic influence.

Rodney King

A figure central to the 1991 police brutality case in Los Angeles, whose violent arrest led to widespread riots and discussions about race and policing in the United States.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Racism

A set of beliefs about the claimed superiority of one racial or ethnic group; used to justify inequality and often rooted in the assumption that differences among groups are genetic.