Which of the following might make it inefficient for a farmer to continue growing crops on a particular piece of farmland?
A) A fall in crop prices
B) A rise in the price developers are willing to pay for the land
C) Erosion of the top soil
D) Rezoning of the land by the county government
E) Any of the above could do it.
E
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The savings rate designates:
A) the difference between household consumption and savings. B) the difference between government revenue and government expenditure. C) the rate of return households earn on their savings. D) the fraction of income that households save.
Which of the following statements about monopoly is false?
A) A single firm serves the market. B) There are no close substitutes for the monopolist's output. C) There are usually significant barriers to entry. D) Because there is a single firm serving the entire market, the monopolist can charge whatever price it wants to for its output.