A landlord will supply her land for rental only if in equilibrium
a. she receives economic rent on the land.
b. she is paid at least the opportunity cost of using the land herself.
c. her land is marginal.
d. her rate of return on her investment in the land is zero.
b
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
One of the most important factors in determining the natural rate of unemployment is demographic change, such as a change in the age of the labor force
a. True b. False Indicate whether the statement is true or false
James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?
a. signaling theory b. human-capital theory c. compensating-differentials theory d. All of the above are correct.
Refer to the graph below. Assume the consumer has an income of $100, the price of X is $2 and the price of Y is $1. According to the graph, the substitution effect of a decrease in the price of X from $2 to $1 is equal to: 
A. 5 B. 20 C. 30 D. 25