Land, unlike labor and capital, has a special feature: It is in strictly fixed supply in total. Be??cause of this, we say that its price is demand-determined. In other words, the price of land is determined completely by what families and firms are willing to pay for it. But not all the land is the same. Some land is more valuable than other land. The value of land to a potential user may depend upon the characteristics of the land itself or upon its location.

Consider the potential uses of a piece of land in a suburb of Kansas City, Allan wants to build a clothing store in that place. He estimates that he can earn economic profits of $ 10,000 per year there because of the land’s excellent location. Bella, another person interested in buying the comer, believes that she can earn $ 35,000 in economic profits if she builds a drug store there. Clearly, Bella will be more likely to get the land.

Because location is often the key to profits, ‘landowners are frequently able to squeeze their renters. One of the most popular locations in the Boston area, for example, is Harvard Square. There are dozens of restaurants in and around the square, and most of them are full most of the time. Despite this seeming success, most Harvard Square restaurant owners are not getting rich, because they must pay very high rents for the locations of their restaurants. A large part of the restaurant’s revenues goes to rent the land. 

Although the supply of land is generally perfectly fixed, the supply of land in a given use may not be so. As the population of a city grows, housing developers find themselves willing to pay more and more for land. As land becomes more valuable for development, some farmers sell out, and the supply of land that can be used for development increases.

5. What’s the difference between land and other resources?

A. Land’s supply is strictly fixed.  B. The prices of other resources are lower.

C. Land can’t be used up.        D. Land is more useful.

6. Which of the following can’t determine the price of a piece of land?

A. Its location.                               B. Its purchasers’ purpose.

C. The total amount of its supply for general use.   D. Its features.

7. Which of the following is wrong according to the passage?

A. The price of a piece of land is changeable.

B. The profit of a shop is often determined by its location.

C. Most Harvard Square restaurant owners would be getting rich, if they paid lower rents for the locations of their restaurants.

D. The supply of land for development might fall down.

8. Which of the following can be the best title of the passage?

A. The Use of Land                B. The Natural Resources 

C. The Land Market                D. The Land Development

5-8  ADDC


解析:

5. A 細(xì)節(jié)題。由第一句it is in strictly fixed supply可知。

6. D 細(xì)節(jié)題。根據(jù)文章第一段最后一句排除A和C；根據(jù)第二段的例子比較排除B。

7. D 細(xì)節(jié)題。由最后一句可知。

8. C 主旨題。由第一段第—句Land，unlike labor and capital, has a special feature及全文對土地價(jià)格的討論可知，答案選C。

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