The theory of land rent holds that
a. capital invested on any plot of land must yield the same return as capital invested on any other plot of land.
b. the difference between the costs of producing on any two pieces of land must equal the difference between their rents.
c. marginal land earns no rent.
d. All of the above are correct.
d
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Refer to the scenario above. You should use ________ to arrive at a decision
A) backward induction B) forward induction C) mixed strategies D) prisoners' dilemma
Welfare recipients might not want the government to actively pursue economic growth because
a. they benefit from a program that may be cut in a process of pursuing economic growth b. they believe that the methods of pursuing growth are not effective c. they do not understand the benefits of economic growth d. they will benefit most when the country does not experience economic growth e. the economic growth will not affect their position in society
Managers at Concord Construction have determined that the firm’s revenues do not cover the firm’s average variable costs. Which term describes the situation at Concord Construction?
a. The shutdown point b. Allocative inefficiency c. Diseconomies of scale d. The price taking point
When total production is greater than total expenditures, __________ is produced than households want to buy, which leads to __________ in inventory, which signals firms that they have __________, which causes firms to cut back production
A) less; decreases; underproduced B) less; increases; overproduced C) more; decreases; underproduced D) more; increases; overproduced