In a Market System, Private Ownership of Land Does Not

question 33

Multiple Choice

In a market system, private ownership of land does not lead to which of the following results?

• A) Private owners will face no cost in using land for one purpose rather than another.
• B) Land rent reflects the opportunity cost of land.
• C) Land is allocated to its best possible uses.
• D) Private land ownership aids economic growth because land rents reflect changes in tastes and technologies.

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Definitions:

Political Instability

The likelihood of significant change in the governing framework of a country, which can include shifts in government, policy upheavals, or civil unrest.

Demographic Transition

The shift from high to low birth and death rates as a nation moves from a pre-industrial to an industrial economic system during its development.

National Incomes

The total earnings from production and services by residents of a country, within a specific time period, including wages, profits, and taxes less subsidies.

Low-Income DVCs

Developing countries with low levels of income per capita, often characterized by economic vulnerabilities.