Explain why unskilled workers earn little economic rent, while much of an NFL quarterback's salary is rent
The supply curve of unskilled workers is more elastic than that of professional quarterbacks because of the
years of training required to train a quarterback. Therefore, more of an unskilled worker's earnings are opportunity cost; more of a quarterback's earnings are rent.
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Deflation causes the demand for bonds to ________, the supply of bonds to ________, and bond prices to ________, everything else held constant
A) increase; increase; increase B) increase; decrease; increase C) decrease; increase; increase D) decrease; decrease; increase
Suppose the Fed purchases $5,000 in U.S. government securities from the Last National Bank and the Last National Bank's account at the Federal Reserve district bank increases by $5,000 . Which of the following is a result of this transaction? a. The Last National Bank's balance sheet shows a change in the composition of its assets. b. Both the Last National Bank's assets and its liabilities
rise by $5,000. c. Both the Fed's assets and its liabilities fall by $5,000. d. Only the Fed's liabilities change, while its assets remain unchanged. e. This transaction decreases the money supply.
For a single country to influence the price of some good in the global market:
A. it must be considered a price taker. B. the quantity it produces and consumes must be small relative to the total amount of that good bought and sold worldwide. C. the quantity it produces and consumes must be large relative to the total amount of that good bought and sold worldwide. D. the country must be large relative to other nations in the world
By using all available resources and technology the economy will:
A. Shift aggregate supply to the right. B. Shift the production possibilities curve to the right. C. Experience long-run economic growth. D. Produce at a point on the production possibilities curve.