In the market for land as a resource, the demand curve is elastic while the supply curve is perfectly inelastic. Identify the underlying assumption.
a. There are limited ways in which land can be used as a resource.
b. Land as an input has large number of substitutes.
c. There is a fixed supply of land.
d. Land includes all immovable assets.
e. The productivity of land improves over time.
QUESTION 2How is positive economics different from normative economics?
QUESTION 3Neuroeconomics suggests that the frontal lobe carries out most decision making and strategic thinking takes place in the prefrontal cortex.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4From the firm's perspective, is an accounting profit of zero a good result, a bad result, or merely a satisfactory result? Why? Is an economic profit of zero a good result, a bad result, or merely a satisfactory result? Why?
QUESTION 5The category of resources economists call land refers to all of the following, except:
a. natural gas.
b. animals.
c. oceans.
d. minerals.
e. buildings.
QUESTION 6How is economic research similar to the research in other branches of science?
QUESTION 7One explanation for the status quo bias is an aversion to loss.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 8Economies of scale:
a. are the result of a diminishing marginal product.
b. pertain to the long run only.
c. refer to the increase in output that results from the increased utilization of a single input.
d. imply that the average total cost curve will fall continuously as output increases in the short run.
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