If a country's population increases while the supply of farmland is fixed, then farmland prices will most likely
a. decrease because people spend more money on food and have less to spend on rent
b. increase because the marginal revenue product of food decreases
c. decrease because farmers must cultivate less productive foods such as potatoes
d. increase because the marginal revenue product of land increases
e. stay the same because there is no relation between farm land prices and population
D
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Suppose that two roommates share a bathroom. Jeff, your roommate, makes a mess with toothpaste in the sink. This bothers the other roommate, Justin. According to the Coase Theorem, one necessary condition to alleviate the externality of toothpaste in the sink is that
A. either Jeff or Justin own the house (and therefore the bathroom). B. neither Jeff nor Justin own the house (and therefore do not own the bathroom). C. Jeff has the right to leave the toothpaste and Justin cannot do anything else. D. Justin has a right to a clean bathroom and Jeff has to clean up the toothpaste.
A policy maker who is concerned that the unemployment rate is too high would ________.
A. use tariffs to reduce imports and increase net exports B. increase the minimum wage C. decrease government spending D. increase taxes
The growth rate of real GDP per person equals the
A) population growth rate plus the growth rate of real GDP. B) change in the economic growth rate divided by the change in the population growth rate. C) the economic growth rate per person divided by the change in the population growth rate. D) growth rate of real GDP minus the growth rate of the population. E) population growth rate plus the growth rate of real GDP then divided by the initial level of real GDP.
If a firm manager has a base salary of $100,000 and also receives 5 percent of all profits, what percentage of his/her final income will be from a profit-sharing plan when profit equals $1,500,000?
A. 51 percent B. 48 percent C. 27 percent D. 43 percent