Changes in the economic rent paid to land
A. only affect marginal land.
B. equal the difference in production costs between the old marginal land and new marginal land.
C. reduce the use of land because the cost of using land is now higher.
D. equal the difference in production costs between productive land and nonproductive land.
Answer: B
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How do large increases in oil prices affect the economy?
What will be an ideal response?
Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in interest rates B) an increase in the money supply C) a decrease in income taxes D) a decrease in government purchases
When a regulatory commission of a public utility, such as an electric company, chooses a fair price as the regulated price, it chooses P = MC
Indicate whether the statement is true or false
If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.