ECSENOMICS Chapter 14 Land and Capital McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14 Land and Capital
ECSENOMICS Fixed Land Must Work for Whatever It Can earn T-99 Figure 14-1 R S L Quantity of land McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Fixed Land Must Work for Whatever It Can Earn T-99 Figure 14-1
ECSENOMICS Tax on Fixed Land is shifted back to Landowners, with Government Skimming Off Pure Economic rent 1-100 Figure 14-2 R 400 300 D 200 E e三 100 D Quantity of land McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Tax on Fixed Land Is Shifted Back to Landowners, with Government Skimming Off Pure Economic Rent T-100 Figure 14-2
ECSENOMICS Present Value of an Asset 1-101 Figure 14-3 100 c80 Interest discount 60 弓40 Present value 20 0 5 10 15 20 Years from now McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Present Value of an Asset T-101 Figure 14-3
ECSENOMICS Investments Today Yield Consumption Tomorrow 1-102 Figure 14-4 Period of increased consumption ritty Island B Island A Period of Investment Present Future Time McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Investments Today Yield Consumption Tomorrow T-102 Figure 14-4