The theory of land rent holds that
a. all plots of land are identical.
b. all land yields a positive rent return.
c. rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land.
d. competition for superior plots of land will force the rent on those lands to a marginal return of zero.
c
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An economy has the income shares information in the table above. Which of the following is TRUE?
A) The information in the table represents the income distribution in the United States. B) Income in the U.S. economy is more equally distributed than that represented in the table. C) Income in the U.S. economy is less equally distributed than that represented in the table. D) The information in the table represents the wealth distribution in the United States.
With only two goods, x and y, if x and y are gross substitutes, a rise in px must necessarily:
a. increase spending in x. b. reduce spending in x. c. increase spending in y. d. reduce spending in y.