A singer would willingly perform in a concert for $100,000. If she is paid $500,000 for the concert, she is
A) receiving $500,000 to cover her opportunity cost.
B) not being paid her full opportunity cost.
C) receiving $400,000 of economic rent.
D) certainly being paid more than warranted by the level of demand.
Answer: C) receiving $400,000 of economic rent.
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A) the fixed-rate payer B) the floating-rate payer C) both payers D) neither payer
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a. True b. False
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase in the real saving and a decline in business investment?
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A. almost three times B. about 50% more than C. slightly higher than D. a little lower than