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 paribus

b. Equilibrium

c. Comparative statics

d. Regression

5.In the 4Q model, how would an increase in household incomeaffect 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 leftwards

b. Pivot clockwise

c. Pivot anticlockwise

d. Shift rightwards

7.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 above

d. R ; P; C; S

8.In the 4Q model, how would more rural subdivisionsaffect private housing prices, rents, and supply?

a. R ; P; C; S

b. R ; P; C; S

c. None of the above

d. R ; P; C; S