A payment for a resource above the opportunity cost of the resource is
A) economic rent.
B) social rent.
C) nominal rent.
D) real rent.
Answer: A
You might also like to view...
If exchange rates are floating, the Fed increasing its target inflation rate will cause the dollar to ________ relative to other currencies and cause net capital outflows to ________
A) appreciate; increase B) appreciate; decrease C) depreciate; increase D) depreciate; decrease
Which of the following operate under a fixed-rate unified currency system?
a. the 12 countries of the European Monetary Union b. the 50 states of the United States c. Hong Kong, Panama, and the United States d. all of the above
Discrimination by a manager in the hiring process
a. decreases the firm's costs. b. increases the firm's costs. c. is evident if a white manager refuses to hire a certain black applicant. d. is evident if a male manager fails to hire a certain female applicant.
If the insurance company offers the insurance for $1,500, then the theory of adverse selection predicts that
Suppose that Dirk and Rollergirl are both considering purchasing insurance. Dirk's "expected loss" is equal to $1,600. Rollergirl's expected loss is equal to $1,200. Also, both Dirk and Rollergirl are "risk averse," and so each of them is willing to buy insurance for an amount that's up to $200 in excess of his/her expected loss. A. both of them will agree to purchase the insurance. B. dirk will purchase the insurance, but Rollergirl will decide that it's too expensive. C. neither one of them will agree to purchase the insurance. D. both of them will agree to purchase the insurance, but the insurance company will still lose money regardless.