Which of the following is true about land rent?
a. It is the difference between the payment for using land in production and the cost of such use
b. When the supply curve of land is horizontal, the position of the demand determines rent.
c. It is a cost to landowners who rent the use of land.
d. When the supply curve of land is vertical, the supply curve determines rent.
e. When the supply curve of land is downward sloping, both the demand and supply curves determine rent.
A
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ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know
A) Australia's inflation rate between 2007 and 2008. B) Australia's price level in 2008. C) the core inflation rate in Australia in 2008. D) the exchange rate between the U.S. dollar and the Australian dollar.
One way that the government encourages the production of a good with positive externalities is to offer
A) an effluent fee. B) a market to pollute. C) a subsidy. D) a pollution tax.