Which of the following is a characteristic of economic rent?
A. It can never be negative.
B. It equals economic profit minus accounting profit.
C. It is driven towards zero by free entry.
D. It can be positive, zero, or negative.
Answer: A
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A sudden decrease in the market demand in a competitive industry leads to
a. A market equilibrium price higher than the original equilibrium in the short-run b. A market equilibrium price equal to the original equilibrium in the long-run c. Both a and b d. None of the above
Explain the effect of right-to-work laws on the collective bargaining power of labor unions
Refer to the table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out?Units ofActivity TotalCostTotalBenefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. 6 B. 3 C. 4 D. 1
If all income is consumed in a year, then
A. income next year will increase. B. investment spending will increase. C. any investment spending will be done by the government. D. investment spending will be zero.