Question

As land prices rise around an expanding city, the land will be converted from farming to buildings

a) when the buildings have twice the value of the farm output

b)  if the land is more valuable to society for buildings than the farm output

c)  in spite of the higher value of using the land for farming.

d) unless the farmer is efficient

Answer 1

Around a expanding city, more land is indeed needed for expansion. Since the land prices rise around an expanding city, the land will be used for building. Because an expanding city much need buildings rather than farming.
ANSWER : (b)

The value of buildings can not be determined only by the price of land. Hence (a) is incorrect.
Farming doesn't need as much investment as making a building. Hence (c) is incorrect.
Farmers may be efficient but if the society needs the land for any other purpose then the farming may stop. Hence (d) is incorrect.