The difference between the cost of production on a piece of land less the cost of production on marginal land is called
a. usury.
b. profit.
c. rent.
d. interest.
c
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In a market-based economy, what is the role of a system of prices?
A. To create abundance and surpluses B. To make goods and services too expensive. C. To address the problem of scarcity D. To create shortages
If your wealth is held as currency or in checking accounts, or other assets that you can convert to money on short notice, your assets are considered to be
A) abundant. B) interest bearing. C) liquid. D) fast moving.
When buying a piece of equipment, it is always best for the firm to pay cash instead of borrowing the funds since this renders the equipment less costly
Indicate whether the statement is true or false
The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that:
A) good A is a normal good. B) good B is an inferior good. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above