The theory of resource pricing is sometimes referred to by economists as the theory of income distribution. Why?
What will be an ideal response?
Resource prices are what producers must pay for the use of those resources. The owners of those resources are the recipients of these payments, or in the simple circular flow model, households supply resources to business firms in exchange for income payments. In other words, the payments that households receive from the sale of their resources constitute income in its various forms: wages and salaries, rent, interest, and profits. Therefore, any theory of how resources are priced is essentially a theory of how incomes are determined.
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For the Fall semester, you had to pay a nonrefundable fee of $600 for your meal plan, which gives you up to 150 meals. If you eat all of the meals, your average cost for a meal is:
A. $5. B. $4. C. $6. D. $0.25.
Use the following graph to answer the next question.
Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be caused by a(n) ________.
A. decrease in aggregate demand B. increase in productivity C. decrease in nominal wages D. increase in government regulation
The rules of accounting generally require that ________ costs be used for purposes of keeping a company's financial records and for paying taxes. These costs are sometimes called ________ costs
A) explicit; accounting B) total; economic C) real; explicit D) economic; legal
The residents of country A earn $500 million of income from abroad. Residents of other countries earn $200 million in country A. These earnings are accounted for in country A's
a. GNP which is larger than GDP in country A. b. GNP which is smaller than GDP in country A. c. GDP which is larger than GNP in country A. d. GDP which is smaller than GNP in country A.