Colin 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

The low unemployment rate and increasing GDP in the Silicon Valley region can lead to an increase in demand for housing, which can drive up prices. This is a common phenomenon in areas with strong economic growth and employment opportunities.

Colin Just Landed a Job Working for a Major Online