Economic rent is any payment
A) received by the owner of a resource in perfectly elastic supply.
B) received by the owner of a resource with a supply curve that is not horizontal.
C) in excess of the resource's opportunity cost.
D) below that of a normal profit or return.
Answer: C
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The aggregate demand curve is usually
A) downward sloping. B) vertical. C) horizontal. D) upward sloping.
If the autarky price of S were lower in country A than in country B, then if trade were allowed
A) A would likely export S to B. B) A would likely import S from B. C) neither country would want to trade. D) None of the above.
Suppose the cost of producing copper tubing is $1 per foot. If production costs were measured on the vertical axis and quantity of copper tubing were measured on the horizontal axis, which of the following lines would have the smallest slope?
a. a line representing the quantity of tubing measured in inches b. a line representing the quantity of tubing measured in feet c. a line representing the quantity of tubing measured in yards d. the 45-degree line e. any vertical line
Which of the following goods is most likely to be over consumed? Fish in:
A. a pet store B. the grocery store C. the ocean D. a fishery