What will happen to the land rents accruing to your local merchants if firms selling their products on the
Internet are not required to collect state sales taxes on their customers’ purchases?
9. How does the value of land change when interest rates increase?
10. a. Phil is considering selling his dairy. If his dairy generates an annual income of $50,000 and if the rate
of interest is 5 percent, what is the present value of his dairy?
b.If the interest rate rises to 7 percent, would he raise or lower his asking price? Explain.
11. Explain why unskilled workers earn little economic rent, while much of an NFL quarterback’s salary is
12. What is a location rent? Give an example of a location rent.
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