Mike Had to Relocate for Work

question 73

Multiple Choice

Mike had to relocate for work.He could have bought a house in the city,but he loves to sail,so he bought a house on a lake where he could moor his boat.As a result,Mike lengthened his commute to work by 30 minutes.Which theory can be used to explain his relocation choice?

• A) water quotient
• B) antiurbanization
• C) environmental-opportunity
• D) recreational living

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Definitions:

Loanable Funds

The market where savers supply funds to borrowers, typically through financial intermediaries.

Quantity Supplied

The total amount of a specific good or service that producers are willing and able to sell at a given price, during a certain time period.

Pension Program

A financial arrangement designed to provide individuals with an income when they are no longer earning a regular income from employment.

Real Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on investment.