A key assumption of Ricardo's economic rent concept was that
A) all land is equally productive.
B) land is too differentiated to be able to measure.
C) only land in large cities matters.
D) land is always cheap and needs development.
A
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A French tourist spent $1,200 in the U.S this year. This transaction will lead to a(n) ________
A) decrease in the GDP of U.S. B) increase in the GDP of France C) decrease in the GDP of France D) increase in the GDP of U.S.
Suppose a smoker wants to quit smoking. The utility that he gets from smoking a cigarette now is 6 utils but, in the long run, that cigarette will generate undiscounted health problems of 10 utils (e.g., an elevated risk of lung cancer)
Use the concept of discounting to explain why impatient smokers may not quit smoking even though the undiscounted net utility of smoking is negative.
When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?
a. rent-seeking b. actions that reduce the value of resources c. productive activities d. destructive activities
According to Friedman and Phelps, policymakers face a tradeoff between inflation and unemployment
a. only in the long run. b. only in the short run. c. in neither the long run nor short run. d. in both the short run and long run.