Economic rent is
A. the sum of the payment actually received by an owner of a factor of production and her reservation price.
B. the payment actually received by an owner of a factor of production.
C. the reservation price of an owner of a factor of production.
D. the difference between the payment actually received by the owner of a factor of production and her reservation price.
Answer: D
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Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
a. How can I communicate more effectively? b. What is the difference between artificial intelligence and emotional intelligence? c. How can government officials get themselves re-elected to office? d. What is the correlation between race and class? e. How do people use limited resources to try to satisfy unlimited wants?
During World War II, the Fed in effect relinquished its control of monetary policy through its policy of
A) continually lowering reserve requirements. B) continually raising reserve requirements. C) pegging interest rates. D) targeting free reserves.
If the aggregate supply curve is flat,
a. expansionary fiscal or monetary policy will cause a good deal of inflation with little increase in real output. b. expansionary fiscal or monetary policy will buy large gains in real output at low cost in terms of inflation. c. a contractionary stabilization policy is an effective way to reduce inflation. d. decreasing the income tax will not shift aggregate demand.
There are 100 dog kennels in Atlanta. An economist studying the pricing behavior of dog kennels tells you that she is limiting her analysis to a time period that does not allow for any new dog kennels to enter the industry or for any established dog kennels to leave the industry. The time period this economist referred to is the
A. short run. B. market period. C. long run. D. industry run.