Multiple Choice

Imagine a sharecropping system where the tenant farmer and landowner traditionally split the harvest 50/50. A new law is passed that entitles the landowner to 75% of the crop. Assuming the tenant farmer is a rational economic agent who decides how much effort to exert, what is the most likely consequence of this new law on the farmer's use of inputs like labor and fertilizer?

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Updated 2025-10-07

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