In sophisticated analysis of rent differences

a. quality of land is assumed away.
b. quality of land is recognized and considered.
c. rates of return are assumed away.
d. returns on land and capital are assumed to be similar.


b

Economics

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If production technologies are homothetic, all cost-minimizing production plans lie on the same ray from the origin for a given set of input prices.

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

Economics

Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a

A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.

Economics

Starting from an initial long-run equilibrium, under the rational expectations hypothesis, an anticipated shift to a more expansionary policy will increase

a. prices but not real output in the short run. b. real output but not prices in the short run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.

Economics

Reserve requirements are regulations concerning

a. the amount of deposits banks are allowed to accept. b. the amount of reserves banks must hold against deposits. c. the total amount of loans banks are allowed to make. d. the interest rate at which banks can borrow from the Fed. e. the number of open market transactions the Fed can perform.

Economics