If a factor of production has no production cost and has a fixed supply, then payments to that factor constitute what economists call:
A. Abnormal profits
B. Economic rent
C. Normal profits
D. Interest payments
B. Economic rent
You might also like to view...
All of the following are examples of risky mortgages that became more common in the 2000s EXCEPT
A) alt-A mortgages. B) adjustable-rate mortgages with low rates for a few years and then higher rates in later years. C) mortgages requiring down payments of at least 20%. D) subprime mortgages.
An individual who holds some of her wealth in the form of money in order to pay rent and buy groceries is illustrating the transactions demand for money
a. True b. False Indicate whether the statement is true or false
Usury laws typically regulate
A. interest rates paid on savings. B. interest rates charged on loans. C. rents charged on land. D. economic rent earned in all factor markets.
Sven likes to water ski, but can only water ski during the one week each year when he is on vacation. Therefore, he plans to ski every day, for eight hours a day. The first day, Sven skied for eight hours and enjoyed every hour. The second day, Sven slept in and then skied for seven hours, which was fun but not as much fun as the first day. The third day, Sven skied for six hours, but was starting to get a bit bored by the end. The fourth day, Sven skied for four hours and then took a nap. On the fifth day of Sven's vacation, Sven went blueberry picking all day. Sven's marginal utility from his first hour of skiing was ________ his marginal utility from his tenth hour of skiing.
A. less than B. the same as C. greater than D. more negative