The Foreclosure Crisis Has Been Particularly Devastating in Housing Markets

question 63

Multiple Choice

The foreclosure crisis has been particularly devastating in housing markets in much of the south and west United States,but even when analysis is restricted to relatively strong housing markets the numbers are staggering.For example,in 2011 an average of three residential properties were auctioned off each weekday in the city of Boston,up from an average of one per week in 2005.What is the probability that at least one foreclosure auction occurred in Boston on a randomly selected weekday of 2011?

• A) 0.0498
• B) 0.1494
• C) 0.8009
• D) 0.9502

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Definitions:

Tax Bracket

A range of incomes taxed at a given rate, used in a progressive tax system to ensure fairness.

Taxable Income

The amount of an individual's or a corporation's income used to determine how much tax they owe to the government in a given tax year.

Deductions

Amounts that are subtracted from income before it is subjected to taxation, decreasing the total taxable income amount.

Transfer Payments

Payments made by governments to individuals without any expectation of a direct return or exchange, such as welfare benefits or social security.