Which of the Following Is Not a Result of the Theory

question 159

Multiple Choice

Which of the following is not a result of the theory of land rent?

• A)Capital invested on any plot of land must yield the same return as capital invested on any other plot of land.
• B)The difference between the costs of producing on any two pieces of land must equal the difference between their rents.
• C)Marginal land earns no rent.
• D)Productive land earns more rent than marginal land, which earns more rent than nonproductive land.

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Definitions:

American Industry

Refers to the manufacturing and economic sectors of the United States which contribute to its Gross Domestic Product (GDP).

Influence Over Price

Influence over price describes the extent to which a producer or a group of producers can determine the selling price of their goods or services in the market.

Free Enterprise System

The free enterprise system is an economic system where private businesses operate in competition and largely free of state control, based on supply and demand.

Central Planning Agency

An organization tasked with overseeing the economic planning and resource allocation in a centrally planned economy, often encompassing various industrial and service sectors.