If the supply of oceanfront lots is fixed and perfectly inelastic,
a. the demand for the resource determines its price and the level of economic rent
b. the supply of the resource determines its price and the level of economic rent
c. the supply of the resource determines its price and the demand for the resource determines the level of economic rent
d. the demand for the resource determines its price and the supply of the resource determines the level of economic rent
e. the supply curve is horizontal
A
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. A movement from CE to BD occurs when
A) the price of capital decreases while the price of labor increases. B) the price of labor decreases while the price of capital remains unchanged. C) the price of capital increases while the price of labor decreases. D) the price of capital increases while the price of labor remains unchanged.
For a particular product, a demand elasticity is a quantitative measure that shows:
A) the percentage change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product. B) the absolute change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. C) the percentage change in quantity demanded relative to the percentage change in any of the other variables included in the demand function for that product. D) the absolute change in quantity demanded relative to the absolute change in any of the other variables included in the demand function for that product.
Which of the following is an automatic stabilizer that moves the federal budget toward deficit during an economic contraction and toward surplus during an economic expansion?
a. Personal income tax revenues. b. Corporate income tax revenues. c. Unemployment benefits. d. All of these.
The narrow definition of money (MI) in the Irish economy is:
(a) Coins, notes and current accounts. (b) Coins, notes, deposit accounts and current accounts. (c) Coins, notes and all deposit accounts. (d) Notes and coins issued by the Irish Central Bank.