The demand for farmland will increase if:
A. the demand for food decreases.
B. technological advances make land more productive.
C. the price of farm labor increases and the output effect exceeds the substitution effect.
D. the supply of farmland increases.
Answer: B
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The marginal product of labor (MPL) is given by the ________
A) labor share of income + average output per unit of labor B) labor share of income - average output per unit of labor C) labor share of income ÷ average output per unit of labor D) labor share of income × average output per unit of labor E) none of the above
The lower the barriers to entry and exit, the more nearly a market structure fits the ____ market model
a. monopolistic competition b. perfectly contestable c. oligopoly d. monopoly e. none of the above
Explain the concept of externality and give an example
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs. B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs. C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs. D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.