When economic rent exists
A) the price is equal to the opportunity cost of the resources.
B) price is the same as the discount rate.
C) resources are allocated inefficiently.
D) resources are allocated efficiently.
Answer: D
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Which of the following would cause the short-run aggregate supply curve to shift to the right?
A) an increase in the price level B) a technological advance C) a decrease in inflation expectations D) an increase in interest rates
Which of the following is a necessary condition for price discrimination?
a. The seller must be able to divide the markets according to the different price elasticities of demand. b. It must be difficult for one buyer to resell to another buyer. c. Both a and b. d. Neither a nor b.
Contestability of markets depends crucially upon
a. the nationalization of these markets b. large economies of scale c. strong brand loyalty for existing firms d. the presence of natural monopoly e. the ability of new firms to enter the market
What are the two types of discretionary fiscal policy?
A) automatic and expansionary B) expansionary and contractionary C) expansionary and recessionary D) automatic and contractionary