Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. All of the resource earnings in market A are economic rent.
b. All of the resource earnings in both markets are economic rent.
c. All of the resource earnings in market B are economic rent.
d. None of the resource earnings in either market is an opportunity cost.
e. None of the resource earnings in either market is economic rent.
C
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Differences in what can explain the wage gap between U.S.-born and foreign-born workers?
(a) Culture (b) Schooling (c) Urbanization (d) All of the above
If an allocation of resources is efficient, then
a. consumer surplus is maximized. b. producer surplus is maximized. c. all potential gains from trade among buyers are sellers are being realized. d. the allocation achieves equality as well.
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A. same, same B. less, same C. more, same D. less, less
Shirking can take the form of:
A. leaving work early. B. long lunch hours. C. sleeping at work. D. All of the statements associated with this question are correct.