Patrick just landed a job working for a major online gaming company in Silicon Valley.In a lot of ways,this is his dream job come true - the chance to work for a company that makes gaming software and live in California at the same time.As his plane lands at San Jose International,he pictures a snazzy apartment with a palm tree right outside the front door.A few hours later,as he meets a property manager of a large apartment complex,his heart sinks.The price of apartments is out of sight! Back at the hotel,he logs on to the Bureau of Labor Statistics to try to get a better picture of why the cost of housing is so high in this region of the U.S.Which factors may be causing the rise in the price of housing?
A)Low Unemployment rate and increasing GDP
B)High consumer's marginal index and low PPI
C)Low CPI and high state tax rate
D)Decreasing Disruptive Technologies Index and high unemployment

Question

Quizplus · Accepted Answer

Low unemployment rate and increasing GDP are indications of a strong economy, which can drive up the demand for housing and cause prices to rise. This is likely the case in Silicon Valley, as it is a hub for the tech industry and has a relatively low unemployment rate.

Patrick Just Landed a Job Working for a Major Online