Question 1
The earnings of a factor in its best alternative use is called its
◦ economic earnings.
◦ economic profit.
◦ intrinsic value.
◦ transfer earnings.
◦ alternative value.
Question 2
Suppose the municipal government of Calgary was able to quantify and then tax economic rent on a highly sought-after piece of land. The result would be
◦ a rise in the price of land.
◦ a shift of the entire tax onto the consumer.
◦ an increase in the supply of the land.
◦ little or no effect on the supply of the land.
◦ a reduction in the supply of land.