What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed.
B) The cost will decline because only very fertile land will now be used for growing vegetables.
C) The cost will rise because it will become more expensive to grow vegetables.
D) The cost won't change, because there has been no change in physical conditions.
E) We cannot predict unless we know what has happened to the demand for vegetables.
C
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Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person II. Growth in real GDP per person is temporary. III. Technological change induces investment. A) I only B) I and II C) II and III D) I, II and III
A theory stating that individuals make purchasing decisions based on tastes which change randomly at random intervals is not useful because
A) it is not possible to test the predictions of the model. B) tastes are not the only factor influencing behavior. C) the model is too simplistic. D) the predictions of such a model would be incorrect.
The incentive to lend increases as the real rate of interest decreases.
Answer the following statement true (T) or false (F)
All choices have monetary costs.
a. true b. false