Lesson 5 — The Dog in the Manger

1. As population grows and material progress advances, why is some land held out of use? (Chp. 22; "Law of Rent")
 
2. In a growing economy, why does rent always take an increasing portion of the wealth produced? (Capital...")
 
3. Unlike speculation in land, speculation in commodities (Chp. 21)

a. benefits consumers.
b. leads to overproduction and bloated inventories.
c. contributes to market panics.
d. is subsidized by the government.

4. Unlike speculation in commodities, speculation in land (Chp. 21)

a. leads to optimal use of resources.
b. decreases wages and interest.
c. contributes to trade deficits.
d. has little economic effect.
 
5. How does withholding land from use affect the margin of production?

It forces the margin to a lower point (to less useful land) than would otherwise be necessary. 
 
6. Need land be held from use completely to lower the margin? Offer an example. (Chp. 21)
 
7. What is the effect of land speculation on the production of wealth? 
 
It restricts production by forcing producers to pay more for better land and to resort to lower-quality land. In effect it is a tax on production for which producers get no benefits.
 
8. What are some environmental effects of land speculation? ("Boom-bust...")

9. What are some social effects of land speculation? (Dog in the Manger...")

How does land speculation decrease the efficiency of public spending on infrastructure?  (A Closer Look...")

11. In a modern economy, no free land is available. Therefore ("Capital...")

a. the Laws of Distribution have been superseded by modern economic policies.
b. only a revolution can solve the problem of poverty.
c. Henry George's analysis must be revised to account for today's conditions.
d. distribution cannot be explained in terms of natural law.
. competition drives wages and interest to the lowest levels that labor and capital will accept.
f. None of the above.