The rental price of capital is
a. determined outside the realm of factor markets.
b. the price paid to use capital for a limited time period.
c. the price paid for ownership of the capital.
d. always more than the purchase price.
b
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For which of the following pairs of goods would most people likely have convex indifference curves?
A) nickels and dimes B) left shoes and right shoes C) movie tickets and concert tickets D) None of the above.
Which of the following is NOT a normative standard for income distribution?
A) the productivity standard B) the egalitarian principle C) rewarding people according to merit D) All of the above are normative standards.
All of following are commonly considered to be common property EXCEPT
A) spotted owls in the wild. B) fish in an ocean. C) chickens raised in a farm. D) wild salmon in a river.
The idea that a person wants to have a bigger house in order to outdo his or her neighbors is referred to as:
A. the incentive compatibility problem. B. luxury fever. C. enlightened self-interest. D. irrational.