If a major league baseball player would be willing to work for $700,000 per year and is currently being paid $1,200,000 per year, that player is earning an annual economic rent of
A. $1,900,000.
B. $700,000.
C. $500,000.
D. $1,200,000.
Answer: C
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Checks are
A) not acceptable for settling transactions in most industrialized countries. B) less important than currency as a means of settling transactions. C) promises to pay on demand money deposited with a financial institution. D) promises to pay coins minted from precious metals on demand.
A potential outcome
A) is the outcome for an individual under a potential treatment. B) cannot be observed because most individuals do not achieve their potential. C) is the same as a causal effect. D) is none of the above.
A firm's isoquant shows
a. the amount of labor needed to produce a given level of output with capital held constant. b. the amount of capital needed to produce a given level of output with labor held constant. c. the various combinations of capital and labor that will produce a given amount of output. d. None of the above.
Which of the following is an area of substantial agreement among macroeconomists?
a. Expansionary policies that lead to inflation can keep the actual rate of unemployment below the natural rate. b. It is relatively easy to time shifts in monetary policy in a manner that will promote economic stability. c. Price stability is a proper goal of monetary policy. d. It is relatively easy to time shifts in fiscal policy in a manner that will promote economic stability.