A homeowner making a mortgage payment is paying
A) a sunk cost which is consequently not a genuine cost at all.
B) the cost of borrowing to purchase the house.
C) the cost of constructing the house.
D) the cost of purchasing the house.
E) the cost of retaining ownership of the house.
E
Economics
You might also like to view...
The most commonly used measure of changes in the cost of living for households
a. real GDP. b. the CPI. c. nominal GDP. d. the GDP deflator.
Economics
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25. B) inelastic. C) Both A and B above. D) Neither A nor B above.
Economics