Economic rent is paid only to land, and not to other resources.
Answer the following statement true (T) or false (F)
False
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A recent study found that it was cheaper to buy a chicken dinner from Kentucky Fried Chicken than it was to prepare it at home. The researcher included all costs including the imputed value of time involved to prepare the meal at home. This study illustrates the
a. value of marginal analysis. b. law of increasing costs. c. difference between real costs and money costs. d. cost disease of the service sector.
When small changes in price lead to infinite changes in quantity demanded, demand is perfectly
a. elastic, and the demand curve will be horizontal. b. inelastic, and the demand curve will be horizontal. c. elastic, and the demand curve will be vertical. d. inelastic, and the demand curve will be vertical.
Answer the following statements true (T) or false (F)
1. Import tariffs benefit the consumers of the product involved. 2. If demand for a product is increasing, an import tariff is less restrictive than an import quota. 3. Export subsidies tend to hurt domestic consumers and benefit the foreign consumers. 4. A voluntary export restraint (VER) is similar to an import quota; except that the former benefits the foreign producers while the latter benefits the domestic producers. 5. Trade protection in most instances transfers wealth from consumers to domestic producers.
A production possibilities frontier cannot be used to show choice
Indicate whether the statement is true or false