Moderate

The urban crisis________________?

Correct answer: A. is intensified by the move of the middle class to the suburbs

  • A. is intensified by the move of the middle class to the suburbs
  • B. has been reduced by urban renewal
  • C. has been intensified by gentrification
  • D. is well on the way to being resolved

Explanation

Suburbanisation draws middle-class residents and resources away from the central city, weakening its tax base and services. Urban renewal may reduce some problems, while gentrification is not the standard primary cause identified here.

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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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