Explain the circumstances under which some component of labor income is economic rent
Economic rent is a payment to a factor above the opportunity cost of the resource. If an individual has an ability that other workers cannot acquire or a skill which is very difficult to duplicate, then the income earned by that individual will contain an element of economic rent as a return to that unique ability or skill. The supply of labor of such individuals would be described as highly inelastic so that increases in demand results in relatively large increases in earnings.
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Economies cannot function without money
Indicate whether the statement is true or false
Increasingly, foreign aid from the United States to less-developed countries has been in the form of grants
Indicate whether the statement is true or false
Sharon voluntarily quit her job and is now searching for a new position. Sharon is classified as a
A. job loser. B. job reentrant. C. new entrant. D. job leaver.
The following quotation comes from remarks given by Ben Bernanke, chairman of the Federal Reserve: “The substantial ongoing slack in the labor market and the relatively slow pace of improvement remain important reasons that the Committee continues to maintain a highly accommodative monetary policy.” Which part of the dual mandate does the quote refer to?
What will be an ideal response?