If the government offers to reduce your property taxes by 10 percent if you install solar heating for your home, this would be an example of
A) police power.
B) incentives.
C) disincentives.
D) ceteris paribus.
Question 2
During the Winter Olympics in Vancouver, some residents rented rooms to visitors. This behavior
A) helped reduce the shortage of hotel rooms caused by the high demand during the Olympics.
B) reduced the demand for tickets to the Olympics since many local residents left town while they rented out space in their homes.
C) hurt the hotel market in Vancouver in the long run because new hotels that should have been built were not built for the Olympics.
D) raised the demand for hotel rooms in Vancouver and should have been prevented by the city of Vancouver.
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