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.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more