In what way does land differ from other inputs such as labor and capital?
What will be an ideal response?
Unlike labor and capital, land is in strictly fixed supply. Therefore, its supply is perfectly inelastic.
Economics
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Growth in potential GDP in the United States is estimated to be about
A) 8.25% per year. B) 5.0% per year. C) 3.2% per year. D) 1.5% per year.
Economics
Acme Steel Co produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is
A) $15,000. B) $20,000. C) $30,000. D) $45,000.
Economics