Economic rents are earned whenever
a. demand for a factor is perfectly inelastic.
b. a factor receives a reward that exceeds its cost.
c. a factor earns a reward that is greater than the amount needed to keep the factor in its present employment.
d. a factor's supply curve intersects its demand curve at a point where demand is inelastic.
c
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Use the following graph, which shows the supply and demand curves for dollars in the pound/dollar market, to answer the next question.
Assume that D1 and S1 represent the initial demand for and supply of dollars. The exchange rate at this equilibrium would be ________.
A. $0.20 = 1 pound B. $4 = 1 pound C. $1 = 5 pounds D. $5 = 1 pound
Which policy measure requires investment banks to make public their analysts' recommendations?
A) Sarbanes-Oxley Act of 2002 B) Global Legal Settlement of 2002 C) Gramm-Leach-Bliley Act of 1999 D) Riegle-Neal Act of 1994
Natural rate of unemployment is considered to be the sum of:
a. seasonal and structural rates of unemployment. b. frictional and structural rates of unemployment. c. seasonal and cyclical rates of unemployment. d. frictional and cyclical rates of unemployment.
Which of the following statements is true of the relationship between average and marginal costs? a. The sum of the marginal cost of a good and its average cost is equal to the total cost of the good. b. The marginal cost of a good is inversely proportional to its average cost. c. The marginal cost of a good is equal to the first derivative of the average cost of the good
d. The average cost of a good is equal to the first derivative of the marginal cost of the good.