How does the supply of land differ from the supply of most labor? How will the effect on price of an outward shift in demand for labor differ from the effect on price of an equivalent shift in the demand for land?
What will be an ideal response?
The key difference between the supply of land and labor is that the supply of land is perfectly inelastic, while the demand for labor is usually considerably more elastic. Thus, an outward shift in the demand for land will cause a greater increase in price than an equivalent outward shift in the demand for labor.
You might also like to view...
_____ are legal and contractual mechanism[s] for creating and operating a business for profit, using capital from investors that will be managed on their behalf by directors and officers
a. Sole proprietorships b. Partnerships c. Joint-ventures d. Corporations
The lime drinks industry and the cola drinks industry are both operating as oligopolies. The two firms in the lime drinks industry agree to form a cartel, while the three firms in the cola drinks industry are unable to come to an agreement. In the given scenario, which of the following statements is true?
a. The producers of lime drinks will share monopoly profits, while the producers of cola drinks will have profit levels typical of competition. b. The producers of lime drinks will have the profit levels of monopolistic competitors, while the producers of cola drinks will eventually have zero profits. c. The producers of lime drinks will eventually have zero profits, while the producers of cola drinks have the profit levels of perfect competitors. d. The producers of lime drinks will have profit levels like perfect competitors, while the producers of cola drinks will share monopoly profits.
Hu earns $120,000 per year. He is charged a 20% tax on the first $80,000 he earns. He is charged a 30% tax for any income he earns between $80,000 and $200,000. If he were to earn an extra $5,000 this year, what would his marginal tax rate be?
a. 10% b. 20% c. 23% d. 30%
A rational criminal model assumes
A. smart people commit crime. B. criminals commit crimes because they have more legal opportunities. C. criminals will commit fewer crimes if the likelihood of getting caught rises. D. criminals will commit more crimes if the severity of punishment rises.