A resource that earns only economic rent
a. cannot be employed in any other line of production, so its opportunity cost is zero
b. is rental payment for a resource that has already been paid for
c. is impossible because all resources have an opportunity cost associated with their use
d. is not fixed in quantity
e. has a perfectly elastic supply curve
A
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What will be an ideal response?
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Last week, 13 Mexican pesos could purchase one U.S. dollar. This week, it takes 11 Mexican pesos to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the United States to Mexico and ________ U.S
aggregate demand. A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
In a given community, if the government builds more freeways, then the supply curve for freeway space shifts rightward and the demand curve for freeway space shifts leftward
Indicate whether the statement is true or false