Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and rents earned by landowners?

Suppose a babysitter demands payment in full before the parents go out for the night. Using the economic way of thinking, the babysitter is clearly

A) exploiting the parents. B) exploiting the children. C) selling short. D) in it only for the money.

A single firm in a contestable market is limited in the amount of economic profit it can earn because there

A) are barriers to entry. B) are no barriers to entry. C) is collusion. D) are government regulations limiting its profit.