People's abilities to bear risk increases with:
a. their abilities to understand the market.
b. their abilities to diversify their asset holdings.
c. their abilities to invest in risky assets over a large time period.
d. their abilities to judge the probability of outcomes.
B
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The Commodity Credit Corporation
a. advises farmers what goods to produce b. makes loans to farmers and accepts farm goods in repayment for the loan c. provides credit to farmers who cannot otherwise get credit from commercial banks d. buys farms goods directly from farmers and sells them to consumers e. provides cash payments to farmers who put their acreage into soil banks
The equilibrium rental income paid to landowners at any point in time equals the
a. purchase price of land. b. value of the marginal product of land. c. marginal product of land. d. wage paid to laborers.