Suppose Income Falls 5 Percent in a Year,and as a Result,housing

question 34

Multiple Choice

Suppose income falls 5 percent in a year,and as a result,housing construction falls from 10 million to 5 million units annually.Based on this information,housing starts are

• A)An inferior good.
• B)A normal good.
• C)Price-elastic.
• D)Price-inelastic.

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Definitions:

Employee Benefits

Various types of non-wage compensation provided to employees in addition to their normal wages or salaries.

Dollar Amount

The total monetary value or cost expressed in units of currency, often used to specify prices, costs, and financial transactions.

Base Compensation

The initial salary or wage provided to an employee not including benefits, bonuses, or any form of variable compensation.

Fringe Benefits Programs

Employer-provided supplementary benefits that accompany direct wages or salaries, such as health insurance, retirement plans, and paid vacations.