Figure 10-3
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In Figure 10-3, the profit maximizing firm will operate at a level of

If the demand for land shifts upward, rents will be

a. earned by some land that was formerly unprofitable. b. lost to many landowners. c. diminished for society as a whole. d. taxed away to help pay the costs of government.

Securitization, the process of forming new securities by bundling or slicing up groups of securities like mortgages and bonds, is:

A. A way of reducing risk though diversification B. Well-understood by financial analysts and managers who engaged in it C. Considered shady by legitimate financial institutions D. Still only a minor portion of the modern financial system