Answer the following statement true (T) or false (F)

1) Demand is the active and supply the passive determinant of land rent.
2) Different rents on land reflect differences in the marginal revenue product of land.
3) The free-land era of U.S. history reflected a situation in which the quantity of land available at a zero price exceeded the quantity of land demanded.
4) Rent performs an incentive function, but no rationing function.
5) The interest rate is the price paid for the use of money.


Answer:
1) True
2) True
3) True
4) False
5) True

Economics

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