The Hawaiian island of Lana'i is privately owned by Castle & Cooke and for generations most of its land was used to grow pineapples. Now, many of the pineapple fields have been replaced by tourist accommodations, including a pair of world-class hotels and a top rated golf course. What would an economist say about this change in land-use patterns?
A) While growing pineapples used the island's land more efficiently, tourism provides utility to the largest number of people.
B) Economic rent has allocated the island's resources to their highest valued use: tourism.
C) Agriculture is still the land's highest-valued and most efficient use, but tourism earns more profits for Castle & Cooke.
D) To find the land's economic rent, add the price per acre that land on Lana'i would be worth if used to grow pineapples to the value per acre when used for a golf course.
Correct Answer:
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Q25: Pure economic rent involves situations where
A) the
Q26: If a factor of production with a
Q27: Supermodel Linda Evangelista has been quoted as
Q28: Economic rent is
A) the return to owners
Q29: If all the return to a resource
Q31: Economic rent directs resources to
A) the people
Q32: The payment for the use of a
Q33: If land is reallocated or switched from
Q34: Economic rents are useful because
A) they increase
Q35: ![]()
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