The theory of land rent holds that
a. all plots of land are identical.
b. all land yields a positive rent return.
c. rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land.
d. competition for superior plots of land will force the rent on those lands to a marginal return of zero.
c
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Which of the following differs between a perfectly competitive market and a market with a perfectly price discriminating monopoly?
A) The amount of producer surplus B) The quantity produced C) The total surplus D) None of the above because they are all the same in a perfectly competitive market and in a market with a perfectly price discriminating monopoly.
Higher prices for scarcer resources can improve the efficiency of an economy.
Answer the following statement true (T) or false (F)
If British government bonds pay a higher interest rate than U.S. government bonds, the dollar should appreciate
a. True b. False Indicate whether the statement is true or false
The government builds a new water-treatment plant. The owner of the company that builds the plant pays her workers. The workers increase their spending. Firms from which the workers buy goods increase their output. This type of effect on spending illustrates
a. the multiplier effect. b. the crowding-out effect. c. the Fisher effect. d. the wealth effect.