A person says,"Prices (for meals at restaurants,clothes,taxis,etc.) are high in Paris,France because land rents are so high in Paris." This person
A) confuses economic rent and pure economic rent.
B) confuses cause and effect.
C) believes that land rents are price determining, when in fact land rents are price determined.
D) b and c
E) a and c
Correct Answer:
Verified
Q142: If the demand for investment loans rises,
Q144: The nominal interest rate is
A)determined by the
Q147: The price of a loanable fund is
Q153: The return on capital is greater than
Q161: The longer the term of a loan,
Q165: Jaime has an old car that he
Q166: Jane has an old car that she
Q170: The current nominal interest rate is 9
Q173: When the expected inflation rate is zero,
Q180: Economic rent is
A)the payment a renter pays
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents