Using Any of the Four Key Principles of Thinking Like

question 87

Essay

Using any of the four key principles of thinking like an economist,explain why farms are not located in major metropolitan areas.

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Definitions:

Compounded Annually

Interest calculation method where interest is added to the principal sum at the end of each year, and the subsequent interest calculation includes the previously accumulated interest.

Simple Interest

Interest calculated on the principal portion of a loan or deposit, without compounding.

Interest

Payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate.