70: The Markets for Land and Capital Flashcards

1
Q

implicit opportunity cost

A

the cost of using land or capital for any given purpose, even in you own it = rental rate

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2
Q

elasticity of supply of land

A

relatively inelastic

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3
Q

elasticity of demand for land

A

relatively elastic

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4
Q

marginal productivity theory of income distribution

A

each factor is paid the value of the output generated by the last unit of that factor in the factor market equilibrium. Explains income distribution among factors

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