The equilibrium rent for marginal land
A. equals zero.
B. depends on the supply and demand of land.
C. exceeds the opportunity cost of the land.
D. is always greater than the equilibrium rent for nonmarginal land.
Answer: A
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In a simple economy without government or foreign trade, any income not consumed is called
A) net investment. B) depreciation. C) saving. D) investment.
Which of the following is inconsistent with Robert Nozick's view of fairness as expressed in his book Anarchy, State, and Utopia?
A) Everything that is valuable must be owned by individuals and that the state must ensure that theft is prevented. B) The only legitimate way a person can acquire property is to buy it. C) The requirement that all people should have equal outcomes. D) None of the above answers is correct because all the answers express thoughts consistent with Nozick's view.
If a firm fired one worker and lost 12 units of production and decides to add one more unit of capital, then to remain on the same isoquant what must be TRUE?
A) The MPK of the next unit of capital added equals 12. B) The firm must force the other workers to work more. C) The firm will experience a decline in output. D) The marginal rate of technical substitution is greater than 12.
In the market for resources, demand and supply:
a. do not behave in the same way as they do in product markets. b. behave in exactly the same way as they do in product markets. c. curves usually do not intersect at equilibrium. d. are both controlled by firms. e. are both controlled by households