The Demand for Farmland Will Increase If

question 152

Multiple Choice

The demand for farmland will increase if

• A)the demand for food decreases.
• B)technological advances make land more productive.
• C)the price of farm labor increases and the output effect exceeds the substitution effect.
• D)the supply of farmland increases.

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Definitions:

Expected Profit Rate

The forecasted return on investment, predicting the percentage of profit relative to costs.

Investment

The allocation of resources or capital to create profit in the future.

Treasury Bond

Long-term, interest-bearing securities issued by the U.S. government as a means of borrowing money to fund government spending.

Corporate Stock

Represents ownership shares in a corporation, allowing shareholders to claim a portion of the company's profits.