Consider an NBA superstar Kobe Bryant and one of your economics professors. Who is likely to receive more economic rent in his/her job? Explain your answer
What will be an ideal response?
Economic rent is a payment for the use of any resource above its opportunity cost. Because it is harder to duplicate a highly paid NBA superstar like Kobe Bryant than an economics professor, it is more likely that the NBA superstar, who has a rather inelastic supply curve, receives more economic rent.
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In the Classical model, high unemployment ________.
A. occurred when the equilibrium GDP was too low B. could last for a long period of time C. would cause wages to fall D. required government intervention to reduce it
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A) you could have earned a higher interest rate if you waited to purchase a bond. B) fluctuations in the price of a financial asset in response to changes in market interest rates. C) you could have gotten a lower interest rate if you waited to lock in a mortgage. D) short-term interest rates may exceed long-term interest rates.
Human capital consists of computers, tools and equipment owned by private individuals
a. True b. False Indicate whether the statement is true or false