One example of Ricardian rent is:
a. rent paid to landlords under price controls.
b. the difference between the price of a highly demanded unique piece of artwork and the opportunity cost of maintaining it.
c. the amount paid to a seller above the equilibrium price of tourist class tickets in order to receive higher quality seats in first class.
d. the price rise of wool from a disease among sheep.
b
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According to the Laffer curve, we know with certainty that an increase in the tax rate will
A) cause tax revenue to increase. B) cause tax revenue to decrease. C) have no effect on tax revenue. D) cause tax revenue to increase, decrease, or remain unchanged.
The United States is considered by the Institute for Management Development to be the most competitive economy because
A) U.S. residents are willing to work harder than anyone else is. B) of widespread entrepreneurship. C) of a high saving rate. D) of selected restrictions on imports from Japan and Europe.
Fiscal policy is more effective when the exchange rate is flexible and the economy is open.
Answer the following statement true (T) or false (F)
Refer to the graph below. It shows short-run cost curves for a competitive firm. At what price would the firm break even?
A. P1
B. P2
C. P3
D. P4