Which Statement Is True

question 77

Multiple Choice

Which statement is true?

• A)All land has the same value.
• B)The supply of land rises with demand.
• C)Land is most efficiently used in rural areas.
• D)The rent on a particular piece of land is based on the supply of land.
• E)The supply of urban land rises with increases in demand.

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Definitions:

Marginal Tax Rate

The tax rate applicable to the last dollar of an individual's or entity's taxable income.

Cost of Debt

The effective rate that a company pays on its current debt, which can include loans, bonds, and any other interest-bearing liabilities.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.

Dividend

The payment made by a corporation to an equity investor (stockholder).