1.In which stage of the business cycle does the unemployment rate increase?a. Trough.b. Contraction.c. Expansion.2.The inventory-to-sales ratio increases:a. At the trough point.b. At the beginning of the recession period.c. At the end of the expansion period.3.Which of the following is NOT a direct factor determining the housing market?a. Interest rates.b. Exchange rates.c. Demographics.4.The study of how changes in exogenous variables affect the endogenous variable is called:a. Ceteris paribusb. Equilibriumc. Comparative staticsd. Regression5.In the 4Q model, how would an increase in household income?ffect private housing prices, rents, and supply?a. R ?; P?; C?; S ?b. R ?; P?; C?; S ?c. R ?; P?; C?; S?d. R ?; P?; C?; S ?6.In the 4Q model, how would a rise in construction costs affect the SW quadrant?a. Shift leftwardsb. Pivot clockwisec. Pivot anticlockwised. Shift rightwards7.In the 4Q model, how would a capital gain tax affect private housing prices, rents, and supply?a. R ?; P?; C?; S ?b. R ?; P?; C?; S?c. None of the aboved. R ?; P?; C?; S ?8.In the 4Q model, how would more rural subdivisions?ffect private housing prices, rents, and supply?a. R ?; P?; C?; S?b. R ?; P?; C?; S ?c. None of the aboved. R ?; P?; C?; S ?BusinessEconomicsPROP 261
