Mr. Calhoun owned land on which cotton could be grown, but which he had been unable to rent for years. Suddenly he was getting offers from cotton farmers to lease his land. Which of the following best explains this change in circumstances?
a. The price of cotton decreased
b. The price of cotton increased.
c. The productivity of the land increased.
d. Property taxes on the land increased.
b
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Refer to Table 4-13. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. What are the equilibrium price and quantity (in thousands) for Aunt Maud's Lotion?
A) $60 and 30 thousand B) $20 and 60 thousand C) $30 and 20 thousand D) $20 and 30 thousand
Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Heckscher-Ohlin Theorem, Chile should export goods that
A) intensively use labor input. B) intensively use capital input. C) intensively use natural resources. D) use capital and labor in about equal proportions.
When the price of ice cream falls, we would expect the quantity demanded of ice cream to rise, ceteris paribus
a. True b. False Indicate whether the statement is true or false
Payments for goods and services that will be used up by households during the year are
A. investment expenditures for the production of output. B. made by firms to households and called national income. C. called consumption expenditures. D. for intermediate goods and are not counted in GDP.