Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 17: Problem 2

The supply of land \((\mathrm{LO1})\) a) is fixed b) varies from time to time c) rises with demand d) is higher in urban areas than in rural areas

Short Answer

Expert verified
The supply of land (LO1) is fixed because it is an immovable resource with a finite amount available. Hence, the correct answer is option a).

Step by step solution

01

Option a: Is fixed

The supply of land is considered to be fixed because there is a finite amount of land available. Land is an immovable resource, so its supply cannot be increased or decreased by the actions of individuals or governments. Therefore, option a) is correct.
02

Option b: Varies from time to time

The supply of land does not vary from time to time. As mentioned before, land is an immovable resource with a fixed supply. No matter the time or period, the total amount of land remains the same. Hence, option b) is incorrect.
03

Option c: Rises with demand

Although the price of land may rise with an increase in demand, the supply of land does not rise along with demand. Due to its fixed nature, an increase in demand might drive up land prices in certain areas, but it will not result in an increase in the supply of land. Therefore, option c) is incorrect.
04

Option d: Is higher in urban areas than in rural areas

The supply of land does not depend on whether it is an urban or rural area. Since the supply of land is fixed, the amount of available land is not dependent on its location. This option is also incorrect because it confuses supply with the price of land. In reality, the price of land is generally higher in urban areas than in rural areas due to the higher demand, but the overall land supply remains constant. In conclusion, the correct answer to the question is: a) The supply of land (LO1) is fixed

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

For a usury law to be effective, it must set the interest rate ceiling (LO4) a) above the equilibrium rate of interest b) below the equilibrium rate of interest c) at exactly the equilibrium rate of interest

When the demand for a plot of land rises, \- \((\mathrm{LO1})\) a) its supply will fall c) its price will fall b) its supply will rise d) its price will rise

Which economist believes all profits are linked with uncertainty and risk? (LO6, 7) a) Frank Knight c) Karl Marx b) Joseph Schumpeter d) John Maynard Keynes

A clothing store on fashionable Rodeo Drive charges more for the same clothes than another store in less fashionable Compton. Why does the first store charge more? (LO3) a) It has to pay a higher rent. b) It knows its customers can afford to pay more. c) It advertises more. d) Because it can.

The practice of usury (LO8) a) is illegal in the United States b) is legal in some states and illegal in others c) is legal only if borrowers are in the military service d) was approved of by most major religions until just a few centuries ago
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free