A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands.
b. Mary will have a higher per capita output from her piece of land.
c. John will not be able to rent out a portion of his land.
d. Mary will have a greater incentive than John to invest in her piece of land.
e. John will be able to use his land as collateral for a loan from a bank.
e
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Which of the following did not occur during the Industrial Revolution?
a. Production became more reliant on highly specialized equipment. b. A more efficient division of labor was promoted. c. Workers bore much of the costs of production. d. The transaction costs of contracting with individual resource owners were reduced. e. Technological development increased the productivity of most workers.
If the economy experiences an unplanned inventory accumulation at the full employment level of GDP, then the economy is in a(n)
a. inflationary gap. b. hyperinflation. c. recessionary gap. d. full employment gap.
Suppose a McDonalds Big Mac costs $4.40 in the United States and 3.30 euros in the euro area and 5.72 Australian dollars in Australia. If exchange rates are .75 euros per dollar and 1.3 Australian dollars per dollar, where does purchasing-power parity hold?
a. both the euro area and Australia b. the euro area but not Australia c. Australia but not the euro area d. neither the euro area nor Australia
Which statement is true?
A. If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers. B. The most important influence on a firm's demand for a factor of production is the demand for the final product. C. A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price. D. All of the statements are true.