Which of the following is true about location rents?
a. They are illegal in many inner-city locations.
b. They are found by taking the shaded area below the transport cost curve.
c. They arise from differential costs in transporting food to the marketplace.
d. They arise when the MRP is lower than the cost of transporting food to the marketplace
e. They would not exist if all land were of similar quality.
C
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A bride accepting a proposal only if the ring is expensive enough is a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
In practice, placing a price control on a natural monopoly:
A. is easy and commonly practiced. B. is difficult because of lack of information. C. always creates the same outcome as public ownership of the industry. D. is never a good idea.
A downward shift in the Fed's policy reaction function is a(n) ________ of monetary policy, and the aggregate demand curve ________.
A. easing; shifts left B. tightening; shifts left C. tightening; shifts right D. easing; shifts right
The graph above shows the PPC for a country that can produce oil or televisions. The straight line is the trade line and CPC if production is at Point A. Is this country producing the optimal mix of oil and televisions to maximize its income? Carefully explain how you know
What will be an ideal response?