Which of the Following Would Be the Most Likely Result

question 78

Multiple Choice

Which of the following would be the most likely result if high-speed rail service were introduced to an area and made commuting from that area easier?

• A) The cost of living far from one's workplace would rise, and the value of land would increase.
• B) The cost of living far from one's workplace would rise, and the value of land would decrease.
• C) The cost of living far from one's workplace would drop, and the value of land would increase.
• D) The cost of living far from one's workplace would drop, and the value of land would decrease.

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Definitions:

Claim Dilution

The reduction in the likelihood of recovery or the value of each creditor’s claim as a result of an increase in the number of claimants or claims against the same debtor or asset.

Secured Loan

A loan that is backed by collateral, providing the lender with assurance that the loan will be repaid.

Unsecured Loan

A loan given without requiring collateral from the borrower.

Underinvestment

The situation where a company or individual invests less than is optimal, potentially leading to lower returns or growth than possible.