When a resource has a perfectly elastic supply curve
A) the amount of economic rent for the resource is determined by its supply.
B) the amount of economic rent for this resource is determined by demand for the resource.
C) there is no economic rent being earned by this resource.
D) the entire payment received by this resource is economic rent.
Answer: C
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Absolute advantage is the ability to produce:
A. more of a good at a lower cost. B. more of a good than others with a given amount of resources. C. a good or service at a lower opportunity cost than others can. D. relatively more than any other good with a given amount of resources.
If you see a movie at a theater, the movie is:
A. an excludable good/service but nonrival in consumption. B. an excludable good/service and rival in consumption. C. a non-excludable good/service but rival in consumption. D. a non-excludable good/service and nonrival.
A decision made by a rational person
A) is intended to make the person worse off. B) would always make the person wealthier. C) is identical to a decision that would be made by any other person facing the same choices. D) is intended to make the person better off.
Which of the following is NOT a feature of monopolistic competition?
A. inability of firms to enter or exit the market B. sales promotion and advertising C. significant numbers of sellers in a highly competitive market D. differentiated products