The factor of production called "land" can be defined as the:
A. earth and anything naturally occurring on or in it used to produce goods and services.
B. area of the earth exchanged in the real estate market by businesses.
C. fraction of total costs spent on rent, lease, or mortgage.
D. earth and any structures on it that are used to produce goods and services.
A. earth and anything naturally occurring on or in it used to produce goods and services.
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Long-term growth in production in an economy can be partially explained by: a. improvements in the rules of the game that facilitate production and exchange. b. the peaks and troughs of the business cycle or economic fluctuations
c. trade surpluses that lead to accumulations of precious metals. d. federal government budget deficits. e. a gradual but consistent increase in the price level.
Which of the following affects the rate of economic growth? a. the quality of available resources. b. the quantity of available resources. c. technological change
d. all of the above.
Which of the following statements best describes price ceilings?
a. A price ceiling that is set at a relatively high level is nonbinding. b. A price ceiling that is set at a relatively low level is nonbinding. c. A price ceiling that is set at a relatively high level will have no practical effect unless the equilibrium price falls below the price ceiling. d. A price ceiling that is set at a relatively low level will have no practical effect unless the equilibrium price soars high enough to exceed the price ceiling.
If production involves increasing opportunity cost, then moving nearer the horizontal axis will increase the opportunity cost of
a. the good that is shown on the horizontal axis. b. the good that is shown on the vertical axis. c. both of the goods shown on the axes. d. neither of the goods shown on the axes.