Explain the effects of communal farming on the incentive for individual farmers to expand their farms, relative to the incentives that exist in a market system
What will be an ideal response?
With the market system, effort and reward are directly linked, so a farmer who expends the effort to produce more crops gets to eat or sell the entire production quantity. With communal agriculture, the farmer who expends enough effort to grow additional crops must share those crops with the other farmers. Communal agriculture shrinks the reward to hard work, so society naturally ends up with less hard work, and as a result, fewer crops.
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In the figure above, with the rent ceiling ________ units of housing are available, and black market rents might be as high as ________ a month
A) 3,000; $625 B) 6,000; $400 C) 3,000; $550 D) 4,000; $550 E) 4,000; $625
In a monopoly,
A) marginal revenue is greater than price. B) marginal revenue is less than price. C) the demand curve is horizontal. D) marginal revenue and price are equal