David Ricardo, a nineteenth-century economist, wrote, "The price of corn is high not because a rent is paid, but a rent is paid because the price of the corn is high." Which of the following correctly explains Ricardo's assertion?
A) The high rents landowners charge tenant farmers cause high corn prices.
B) If landowners weren't so greedy and lowered the rents they charge tenant farmers, the price of corn would fall.
C) If the price of corn rises because of increased demand for corn, land rents will rise to absorb most of the extra revenue received by tenant corn farmers.
D) If the price of corn rises, all other things being equal, increases in rent will cause some tenant farmers to stop growing corn.
Correct Answer:
Verified
Q115: Which of the following is considered to
Q116: Which of the following resource payments is
Q117: The reason why socialists favor the nationalization
Q118: The aggregate economic rent received by a
Q119: Which of the following statements is correct?
A)
Q121: Other things equal, the interest rate on
Q122: "Pure rate of interest" refers to the
Q123: The loanable funds theory of interest shows
Q124: In general, if we compare two loans
Q125: Which of the following will increase the
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