Which of the following situations will tend to feature economic rents that are much higher than the resource's opportunity cost?
a. Unskilled day labor on a construction site
b. Generic lumber used in the construction of a commercial building.
c. Wheat grown by one of the thousands of wheat farmers in the U.S. and bought by Kellogg to produce breakfast cereal
d. An otherwise unemployable software engineer possessing unique knowledge required to resolve a particular company's latest software bug.
d
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The minimum amount of reserves the Fed requires a bank to hold
a. is the excess reserve requirement b. is the legal reserve requirement c. is the deposit requirement d. depends on the interest rate e. depends on the money supply
Consider two activities: Attending economics class and reading an economics textbook. Zack thinks he can learn economics by either attending class or reading the textbook. Zoe knows she learns best by both attending class and reading the textbook. Use indifference curves to illustrate each person's preferences for attending class and reading the text.
What will be an ideal response?
The economic surplus of an action is:
A. the benefit gained by taking an action. B. the money a person has left over after taking an action. C. the difference between the explicit and implicit costs of taking an action. D. the difference between the benefit and the cost of taking an action.
A currency support policy consists of the:
A. selling of a currency to maintain its value above its short-term equilibrium value. B. buying of a currency to maintain its value above its long-term equilibrium value. C. selling of a currency to offset fluctuation in supply and demand for the currency. D. buying of a currency to maintain its value below its long-term equilibrium value.