Rent is defined as the
a. payment received for the use of an asset
b. cost to an entrepreneur for using his or her own resources
c. difference between what a resource receives and the cost of bringing that resource into production
d. difference between the total revenue earned from selling a good and the cost of bringing the good into being
e. selling value of land
C
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In the above figure, what is the amount of consumer surplus at the efficient quantity?
A) $0 B) $1,000 C) $2,000 D) $4,000
The law of diminishing marginal utility means that: a. marginal utility is maximized when consumers get the same amount of total utility from every good they consume. b. total utility is maximized when consumers get the same amount of marginal utility from the last unit of every good they consume. c. beyond some point, added units of a product provide lower and lower amounts of marginal
utility. d. a consumer would get less utility from the last unit of a good consumed when that good costs $3 than when it costs $1.
In the long run, supply shocks
a. are of no concern b. are automatically offset so that the full-employment level of output is restored c. cause the long-run AS curve to shift d. have no effect on the wage rate e. are automatically offset so that output and the price level return to their original values
In the Solow model, if k = 8, y = 20, and s = 0.2, what is c?
A. 20 B. 12 C. 16 D. 24