Why is home ownership a source of capital income?
What will be an ideal response?
Home ownership is one important source of (implicit) capital income. A person who owns a home does not need to pay rent. Economists consider this "non-payment" to be a form of capital income. The income from home ownership is the amount of money the owner would have needed to spend had he or she been renting the same kind of home or apartment from a landlord.
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One of the interesting findings of a survey of firm managers by Blinder et al. is that:
A) the vast majority of firms pay considerable attention to marginal costs in making decisions about how much output to produce. B) the majority of respondents suggested that fixed costs are a relatively unimportant consideration when making output decisions. C) approximately 75 percent of respondents indicated that their marginal costs of production are rising over the relevant range of output. D) a significant percentage of respondents to the survey did not appear to understand the concept of marginal cost.
Judging from the table of the four types of goods, goods that are excludable would include ______.
a. pizzas and movie streaming
b. rainforest trees and street lighting
c. the atmosphere and rainforest trees
d. pizzas and street lighting
If in the short run total product is decreasing as more workers are hired, then the marginal physical product is
A) increasing. B) zero. C) negative. D) positive.
A monopsonistic employer will pay a wage rate
A. equal to MFC. B. less than the labor's MRP. C. greater than the labor's MRP. D. equal to the labor's MRP.