Economic rent is that portion of a resource's total earnings that exceeds its opportunity cost
a. True
b. False
A
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How do economists define the time period known as the long run?
What will be an ideal response?
Subsidizing education can lead an efficient level of production because education has external benefits
Indicate whether the statement is true or false
Consider the following problems: overcrowded public highways, overfishing in the ocean, polluted air, and the near-extinction of the wild rhinoceros. What do these problems have in common?
a. Private markets could easily solve them if governments left the markets alone. b. They would all go away if the government sponsored an intensive public-information campaign. c. They are all the result of a failure to establish clear property rights over something of value. d. They are all the result of a failure of corrective taxes.
Which is not a determinant of the price elasticity of demand for most products?
A. The proportion of most consumers' budget spent on the product B. The slope of the demand curve for a product C. The amount of time consumers have to adjust their purchases of a product to a change in its price D. The number of good substitutes available for the product