Suppose That a Large Lake in the Middle of Minnesota

question 61

Multiple Choice

Suppose that a large lake in the middle of Minnesota evaporates,leaving fertile farm land for growing corn.Assuming that land and labor are complements in a farming production function,what would happen to the wages earned by workers and rents earned by landowners?

• A)Both wages and rents would increase.
• B)Both wages and rents would decrease.
• C)Wages would increase, and rents would decrease.
• D)Wages would decrease, and rents would increase.

---

Definitions:

Percentages

Numerical values expressed as fractions of 100, used to denote proportions or ratios in various contexts.

Statistical Measurements

Quantitative methods used to collect, analyze, interpret, and present data to derive meaningful conclusions and insights.

Table

A structured arrangement of data made up of rows and columns, typically used for organizing and displaying information.

Visual and Spatial Characteristics

Features related to the appearance and arrangement of objects in space, affecting the visual appeal and functionality of designs or environments.