When a CEO gets 20 million dollars a year in salary is any of that considered rent?
A. Because he would leave the company if he got less, none of the money is considered rent.
B. All of the money is economic rent because rent refers to all money that moves resources to where they are used.
C. Any part of the salary that exceeds the average CEO salary in the industry is rent.
D. The part of the salary that exceeds the next highest paid CEO in the industry is rent.
Answer: A
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Which function of money represents a measure for stating the prices of goods and services?
A) medium of exchange B) unit of account C) store of value D) means of payment
Many cities have summer pops series in which the local orchestra performs light classical music in a public park. These performances are free in some areas. Apply the concept of a public good to pops performances and explain whether an admission charge is efficient.
What will be an ideal response?
The gross domestic product (GDP) is the market value of all goods and services produced by the economy in one year.
Answer the following statement true (T) or false (F)
If interest rates in the United States are higher than interest rates in Europe, what is most likely to happen?
A. Supply of dollars will increase, causing appreciation of the dollar. B. Supply of euros will increase, causing appreciation of the euro. C. Demand for dollars will increase causing appreciation of the dollar. D. Demand for dollars will decrease, causing depreciation of the dollar.