If an individual possesses an ability that others cannot acquire, payment to that individual is
a. partly economic rent.
b. a return called the real wage.
c. a return from investment in human capital.
d. comparable to the return to well-trained nurses.
a
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The International Monetary Fund divides nations into three groups. What are the three groups and what are the characteristics of each group?
What will be an ideal response?
In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:
A. prevented Americans from entering into mortgage contracts that they did not understand. B. were an example of how the government can act to solve the moral hazard problem. C. were so numerous and detailed that borrowers didn't read or understand the information the companies had disclosed. D. reduced statistical discrimination in the home mortgage market.
The most a monopolist can sell at any given price is:
A. constrained by the availability of inputs. B. less than if it were a perfectly competitive market. C. the amount demanders are willing to buy at that price. D. the amount he alone can supply the market with.
Which of the following factors reduces the need for government involvement in the marketplace?
A. The need for public goods B. Incomplete information C. The incentive to rent-seek D. The presence of externalities