Suppose an Apartment Complex Converts to a Condominium,so That the Former

question 46

Multiple Choice

Suppose an apartment complex converts to a condominium,so that the former renters are now owners of their housing units.Suppose further that a current estimate of the value of the condominium owners' housing services is the same as the rent they previously paid.What happens to GDP as a result of this conversion?

• A)GDP necessarily increases.
• B)GDP necessarily decreases.
• C)GDP is unaffected because neither the rent nor the estimate of the value owner-occupied housing services is included in GDP.
• D)GDP is unaffected because previously the rent payments were included in GDP and now the rent payments are replaced in GDP by the estimate of the value of owner occupied housing services.

---

Definitions:

Bayley Scales

A set of standardized tests used primarily to assess the development of infants and toddlers, covering areas such as motor, cognitive, and language skills.

Mental and Motor Abilities

Refers to the combination of cognitive functions and physical movement skills.

Environmental Influences

External factors including social, physical, and cultural environments that affect an individual's behavior, decisions, and lifestyle.

Genetic Influences

The impact of genes inherited from parents on the traits, behaviors, and health of an individual.