(Table: Sales and Payments) Suppose that the price of
The agricultural good increases with no change in the
Price of the manufactured good.Which of the following
Resources will show the MOST gain?
A)Capital
B)Labor
C)Land
D)capital and labor

Question

(Table: Sales and Payments) Suppose that the price of
The agricultural good increases with no change in the
Price of the manufactured good.Which of the following
Resources will show the MOST gain?
A)Capital 
B)Labor 
C)Land 
D)capital and labor

Quizplus · Accepted Answer

Since the price of the agricultural good has increased, the resource that will show the most gain is the resource that is directly related to the production of that good. In this case, it is land. The increase in price of the agricultural good will lead to higher demand for land, which will result in higher rental income for landowners or increased profit for farmers who own their own land. Capital and labor may see some gain as well, but it will not be as significant as the gain in land.

(Table: Sales and Payments) Suppose That the Price of