One example of Ricardian rent is
a. rent paid to landlords under price controls.
b. the difference between the wage of a star baseball player and what he could earn outside of baseball.
c. the amount paid to a seller above the equilibrium price of tourist class tickets in order to receive higher quality seats in first class.
d. the price rise of wool from a disease among sheep.
b
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Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.
Answer the following statement true (T) or false (F)
Suppose you had $1,000 to spend. You choose to spend the money on new clothes rather than on a new surfboard, your second choice or 1,000 lottery tickets, your third choice.
A. Your opportunity cost of spending the money on clothes is the $1,000 spent. B. Your opportunity cost of spending the money on clothes is not buying the surfboard. C. Your opportunity cost of spending the money on clothes is not buying the surfboard and the lottery tickets. D. There is no opportunity cost in this instance.
Which of the following was established first?
a. gatt b. nafta c. wto d. a and b were established at the same time
Because an increase in the nominal interest rate raises the opportunity costs of holding money, the money demand curve:
A. shifts to the right. B. slopes downward. C. shifts to the left. D. slopes upward.