When a resource has a perfectly elastic supply curve
A. the entire payment received by this resource is economic rent.
B. the amount of economic rent for the resource is determined by its supply.
C. the amount of economic rent for this resource is determined by demand for the resource.
D. there is no economic rent being earned by this resource.
Answer: D
You might also like to view...
Cost-benefit analysis is a tool that is used
A) only by businesses. B) only by individuals and businesses. C) only by governments. D) by individuals, businesses, and governments.
Why do price levels increase when government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?
What will be an ideal response?
Toni practices dancing while listening to loud music, which makes it hard for her neighbors to relax. What does her negative impact on others best represent?
a. pecuniary cost b. nonpecuniary cost c. moral hazard d. adverse selection
Thinking up a new idea is an example of
A. social overhead capital. B. human capital accumulation. C. an innovation. D. an invention.