Which is the correct match of an economic resource and payment for that resource?
a. Entrepreneurial ability and wages
b. Capital and interest income
c. Land and profit
d. Labor and rental income
Answer: b. Capital and interest income
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A price floor is considered
A) "fair" based only on the fair results view. B) "fair" based only on the fair rules view. C) "unfair" based on both the fair results and fair rules views. D) "unfair" based only on the fair results view. E) "fair" based on the fair results view and on the fair rules view.
According to the law of diminishing utility, _____
a. the same tax rate should be applied to every dollar b. the rich people should have a lower tax rate as compared to poor people c. the rich people should have a higher tax rate as compared to poor people d. the total burden on the society from a tax will be less if proportional taxation is used e. the poorer people should not be taxed at all
Which of the following is true regarding bonds? a. Other things equal, bondholders have greater financial security than stockholders. b. The possibility of a bond's value increasing greatly is limited compared to stocks. c. The legal obligation to bondholders is of higher priority than that of stockholders. d. Higher market interest rates represent a risk to bondholders
e. all of the above
If a union raises the wage in its industry above equilibrium, then there is an increase in
a. structural unemployment which is part of cyclical unemployment. b. structural unemployment which is part of the natural rate of unemployment. c. frictional unemployment which is part of cyclical unemployment. d. frictional unemployment which is part of the natural rate of unemployment.