A firm can capture value through market power or through superior factors of production. The rent earned through the use of superior factors of production is
A. Bushian rent.
B. monopoly rent.
C. Ricardian rent.
D. housing rent.
Answer: C
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If the banking system has a required reserve ratio of 25 percent, then the money multiplier is
A) 2. B) 4. C) 5. D) 10.
If one person has all the income and everyone else has none, the Gini ratio is zero
Indicate whether the statement is true or false
Assume that price is greater than average variable cost. If a perfectly competitive firm is producing at an output where price is $114 and the marginal cost is $102, then the firm is probably producing more than its profit-maximizing quantity
Indicate whether the statement is true or false
What causes cyclical unemployment?
a. workers searching for suitable jobs and firms looking for suitable workers b. the persistent mismatch of workers’ skills and the requirements of jobs c. short-term cyclical fluctuations in the economy d. short-term seasonal fluctuations in the job market