Economic rent serves
A. no useful function in a modern economy.
B. an allocative function by guiding available supplies to the most efficient use.
C. a descriptive function by making some wealthier than others, but serves no allocative function.
D. only to make the rich richer and the poor poorer.
Answer: B
You might also like to view...
What are the problems associated with price regulation?
What will be an ideal response?
Compared to a situation in which there is no change in the value of the dollar relative to the peso, in which of the following situations would you be worse off?
A) you borrow $10,000, you earn income in pesos, the dollar appreciates against the peso, you must pay back the loan in dollars B) you borrow $10,000, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in dollars C) you borrow 10,000 pesos, you earn income in dollars, the dollar appreciates against the peso, you must pay back the loan in pesos D) you borrow 10,000 pesos, you earn income in pesos, the dollar depreciates against the peso, you must pay back the loan in pesos
Given the possible strategies listed below, design the best plan for increasing the country's future standard of living. i. build new factories ii. print money iii. develop new production technology iv. sacrifice consumer goods for capital formation iv. tighten immigration policy v. produce only enough capital goods to replenish depreciation.
A. i, ii, and iii only B. i, iii, and iv only C. ii, iv, and v only D. i, ii, iii, iv, and v
The difference between the total amount that producers would have been willing to accept for the total quantity produced in a market and what they actually received at the market clearing price is called
A) production excess. B) excess demand. C) market surplus. D) producer surplus.