Economic rent represents
a. a loss to society since resource owners do not earn it
b. the difference between marginal revenue product and marginal resource cost
c. a loss to resource owners who earn less than the market value of the resource
d. any resource earnings less than that resource's opportunity cost
e. any resource earnings greater than that resource's opportunity cost
E
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The exchange rate of currencies between countries affects the prices of the goods purchased and sold between them
Indicate whether the statement is true or false
Assuming that pollution cannot be removed from the environment at zero cost, the optimal level of pollution
A) will be zero. B) will be negative. C) will be positive. D) cannot be determined.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the net nonreserve international borrowing/lending balance and the monetary base in the context of the Three-Sector-Model? a. The
net nonreserve international borrowing/lending balance becomes more negative (or less positive) and monetary base falls. b. The net nonreserve international borrowing/lending balance becomes more negative (or less positive) and monetary base rises. c. The net nonreserve international borrowing/lending balance becomes more positive (or less negative) and monetary base falls. d. The net nonreserve international borrowing/lending balance and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
A tech company loses a high-profile patent-infringement case against its top competitor. Which of the following is true?
a. Demand for the company's stock decreases, while the price of a share falls. b. Demand for the company's stock decreases, while the price of a share rises. c. Supply of the company's stock decreases, while the price of a share falls. d. Supply of the company's stock decreases, while the price of a share falls.