The payment for a factor of production that is completely inelastic in supply is
A. discounting.
B. economic rent.
C. opportunity cost.
D. limited liability.
Answer: B
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Refer to Figure 2-9. What is the opportunity cost of producing 1 popsicle in Greenland?
A) 2/3 of a snow cone B) 5/6 of a snow cone C) 1 1/5 snow cones D) 240 snow cones
Which of the following statements is correct?
a. The establishment of property rights sometimes gives rise to market failure. b. The absence of property rights sometimes gives rise to market failure. c. In the context of public goods, the Coase theorem implies that total surplus in some markets can be improved by the elimination of property rights. d. Government regulation of private behavior, in response to market failure, can never improve social well-being.
All of the following would be considered a current account transaction EXCEPT the
A) importing of services. B) exporting of goods. C) importing of capital. D) importing of goods.
Refer to the diagram. From society's perspective, if MB 2 and MC 1 are relevant:
A. Q 4 represents too little pollution abatement.
B. Q 1 represents too little pollution abatement.
C. Q 3 represents an optimal amount of pollution abatement.
D. Q 2 represents too little pollution abatement.