Which statement is true?
A. As rents rise more marginal land is used.
B. As rents rise less marginal land is used.
C. Land is basically free. We pay rent for the buildings that are situated on the land.
D. None of the statements are true.
A. As rents rise more marginal land is used.
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Spending on the war in Afghanistan is essentially categorized as government purchases. How do decreases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the left. B) They will shift the aggregate demand curve to the right. C) They will move the economy up along a stationary aggregate demand curve. D) They will move the economy down along a stationary aggregate demand curve.
Refer to the above table. If the price of the good produced is $5, the marginal revenue product of the 5th worker is
A) $3350. B) $670. C) $500. D) $100.
An unplanned economy operating under laissez faire
a. allocates resources by market supply and demand. b. cannot respond to basic questions about production and distribution. c. shows breakdowns with frequent surpluses and shortages. d. allocates goods and services under government subsidy.
Why is efficiency desirable?
A) It results in an equal distribution of income. B) It results in the highest prices for the goods and services produced. C) It makes best use of the available resources. D) It is the most politically popular solution.