When a factor of production is in fixed supply, the revenue it earns
a. consists entirely of rent.
b. is an efficiency wage.
c. is independent of how the resource is used.
d. consists entirely of deadweight loss.
a. consists entirely of rent.
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The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1
Indicate whether the statement is true or false
If the Federal Reserve raises interest rates in an autonomous tightening ________
A) the MP curve shifts up, there is an upward movement along the IS curve, and the AD curve shifts to the left to a lower level of equilibrium output B) the MP curve shifts down, there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output C) the MP curve shifts up, there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output D) the MP curve shifts down, there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output E) none of the above
For interest rates to remain stable during economic expansions, the money supply should: a. decrease at a faster rate than the demand for money. b. grow at the same rate as money demand
c. grow at a faster rate than money demand. d. grow at a slower rate than money demand. e. decrease at a slower rate than the demand for money.
Commercially-run forestry companies that have secure property rights over their trees:
A. Harvest them as soon as possible, and replant them when they are harvested B. Harvest them as soon as possible, and do not replant them when they are harvested C. Do not harvest them as soon as possible, and do replant them when they are harvested D. Do not harvest them as soon as possible, and do not replant them when they are harvested