Land will be allocated between competing uses so that ?
Correct answer: D. the equilibrium rental rate equilibrium total demand with supply
- A. housing gets priority
- B. industry gets priority
- C. farming gets priority
- D. the equilibrium rental rate equilibrium total demand with supply
Explanation
Land moves toward uses offering the highest return until the rental rate balances total demand with the available supply. No single use automatically receives priority because allocation depends on relative demand and returns.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
The functional distribution of income shows how national income is divided between ?
Different capital intensity in different industries is mainly explained by _______ and ________?
The value of an asset depends upon ?
In the short run, the supply of capital is ________ and in the long run will depend on _______?
The marginal revenue product of capital is the ?
the cost of using capital services is the ?