The concept of economic rent is associated with the British economist David Ricardo (1772-1823). Ricardo analyzed economic rent for land. Which of the following is FALSE with respect to determining land rent?
A) The supply curve for land is vertical (perfectly inelastic).
B) Rent is payment for a resource above its opportunity cost.
C) Payment for a resource below its opportunity cost is rent.
D) Ricardo assumed the quantity of land in a country is fixed.
C
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When a corporation uses profits to pay for the purchase of new capital equipment, this is known as
A) reinvestment. B) a coupon payment. C) dividend. D) collusion.
If Adam's Rib Joint took in $35,000 in revenue last week and had out-of-pocket expenses of $31,500:
a. it is clear that Adam made an economic profit of $3,500 b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm. c. Adam clearly did not earn an economic profit. d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.
Studies using the gravity model have found that countries that have a common currency trade more with each other.
Answer the following statement true (T) or false (F)
The long-run aggregate supply curve shows the...
What will be an ideal response?