Which of the Following Is a Benefit Unique to Buying

question 108

Multiple Choice

Which of the following is a benefit unique to buying a duplex,as opposed to the purchase of a single-family home?

• A)Real estate taxes are tax deductible.
• B)The rent income will help make the mortgage payment.
• C)Mortgage interest payments are tax deductible.
• D)The value of the home may increase over time.
• E)Only a duplex allows for rental income to help cover the payment on the mortgage.

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Definitions:

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum output that can be produced with those inputs.

Profit-maximizing

The process or strategy implemented by firms to determine the price and output level that returns the highest profit.

Weak Axiom

Often associated with the Weak Axiom of Revealed Preference (WARP), which is a condition used in consumer choice theory to describe consistent consumer behavior.

Profit Maximization

The strategy of adjusting production and sales to achieve the maximum possible profits.