Question :
11) The aggregate quantity of land supplied
A) varies depending : 1238899
11) The aggregate quantity of land supplied
A) varies depending on its price.
B) depends on the buying and selling decisions of individuals.
C) is constantly increasing.
D) is fixed.
E) is perfectly elastic.
12) The market for land
A) has an elastic supply.
B) has a perfectly inelastic supply.
C) determines the equilibrium interest rate.
D) has an upward sloping supply curve.
E) has no equilibrium because both the demand curve and the supply curve are vertical.
13) Refer to the figures above to answer this question. Figure ________ represents the market for ________ because its supply is ________.
A) A; land; perfectly inelastic because the quantity of land is fixed
B) A; a nonrenewable resource; inelastic because reserves can always be discovered
C) B; land; inelastic given only a limited amount of land is available
D) B; a nonrenewable resource; demand changes as the economy changes
E) B; land; elastic as predicted by the Hotelling Principle
14) Refer to the figures above to answer this question. Figure B represents the market for ________ because ________, all else held the same.
A) land; landowners respond to higher rental rates by making more land available
B) a nonrenewable resource; as the interest rate increases, less of the resource is supplied
C) capital; the Hotelling Principle predicts that prices will vary inversely with the interest rate
D) land; the Hotelling Principle states rental rates will increase predictably over time
E) capital; as the rental rate increases, the quantity of capital supplied increases and the quantity of capital supplied decreases
15) The supply of land is perfectly ________ because no matter the amount of rent offered for land, the quantity of land is ________.
A) elastic; fixed
B) inelastic; fixed
C) elastic: renewable
D) inelastic; nonrenewable
E) elastic; nonrenewable
16) In the market for land, the supply curve is
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.
E) U-shaped.
17) As the price of land rises, the quantity supplied
A) increases.
B) decreases.
C) at first increases and then decreases.
D) stays the same.
E) at first decreases and then increases.
18) In the market for land, an increase in demand ________ the equilibrium rent of land and ________ the equilibrium quantity.
A) raises; does not change
B) lowers; increases
C) raises; increases
D) does not change; increases
E) does not change; does not change
19) The supply of nonrenewable natural resources is
A) perfectly inelastic.
B) perfectly elastic.
C) always elastic but not necessarily perfectly elastic.
D) inelastic at high prices and elastic at low prices.
E) elastic at high prices and inelastic at low prices.
20) The proposition that the price of a resource is expected to rise at a rate equal to the interest rate is called the
A) Discounted Value Proposition.
B) derived demand for productive resources.
C) diminishing marginal revenue product.
D) Interest Rate Theory.
E) Hotelling Principle.
