Suppose That a Large Lake in the Middle of Minnesota

question 8

Multiple Choice

Suppose that a large lake in the middle of Minnesota evaporates, leaving more fertile farm land for growing corn available. 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.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Superego

The third psychic structure, which functions as a moral guardian and sets forth high standards for behavior.

Cognitive Therapy

A form of psychotherapy that emphasizes the identification and modification of dysfunctional thought patterns.