Rents
A) have no useful economic purpose.
B) have an allocative function since they help decide to which use a resource will be put.
C) have a distributional function since they affect incomes, but have no allocative function since the resource is in fixed supply.
D) have an economic purpose only if they are taxed and provide revenue to the government.
Answer: B
You might also like to view...
Refer to Table 15.1. The budget deficit for Arugula in 2012 is
A) $135 million. B) $195 million. C) $380 million. D) $600 million.
Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. Increased business optimism about the future. b. The economies of key trading partners fall into a recession. c. A sharp increase in the value of stocks owned by Americans. d. An increase in the expected rate of inflation.
When a slice of pizza at the student union sold for $2, Moe did not purchase any. When the price fell to $1.75, Moe purchased a slice each day for lunch. Thus, we can infer that Moe's reservation price for a slice of pizza is:
A. less than $1.75. B. exactly $1.75. C. exactly $2.00. D. at least $1.75 but less than $2.
If an American traveling abroad can obtain 115 euros for $100 U.S. the current euro per $ exchange rate is:
A. 1euro/1.15$. B. 1.15 euros/$. C. 115euros/$. D. 0.870 euros/$.