Suppose acre A is located at the market with zero transport costs of bringing its radishes to market. It costs acre B, located 20 miles away, $500 to transport its radishes to market. If demand for radishes is large enough so that both acres will be used to produce radishes,
a. the owner of acre A will earn zero location rent
b. the owner of acre B will earn location rent of $500
c. the owners of acres A and B will earn combined location rents of $1,000
d. as long as one acre is located at the market, neither landowner of acre A nor B will earn location rent
e. the owner of acre A will earn a location rent of $500
E
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According to the text, U.S. manufacturing data show that
a. the economy is rapidly becoming more concentrated into the hands of the few b. the economy today is less concentrated than it was in 1865, just after the Civil War c. concentration in the economy has remained fairly stable over the past 40 years d. the U.S. economy is much more concentrated than most other industrialized nations of the world e. concentration has fallen rapidly over the past 40 years
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A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.