David Ricardo used the example of land to demonstrate the concept of rent, as the supply of land is
A) perfectly elastic.
B) relatively elastic.
C) perfectly inelastic.
D) negatively sloped.
C
You might also like to view...
The subprime financial crisis caused a recession because of the ________ in adverse selection and moral hazard problems and the ________ in housing prices
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Included in the official U.S. money supply are
a. U.S. government bonds. b. corporate stocks. c. check able deposits. d. All of these.
When full employment is present in the United States:
A. the rate of unemployment will fall to zero. B. the actual rate of unemployment will be less than the natural rate of unemployment. C. approximately 95 percent of the adult population will be employed. D. approximately 95 percent of the labor force will be employed.
Ernie's Sushi-On-A-Stick is a perfectly competitive firm currently employing 75 workers. The marginal revenue product of the 75th worker is $9.00 per hour. The wage rate is $12.00 per hour. To increase profits, this firm should
A. continue hiring 75 workers because the firm earns a surplus of $3.00 on each worker hired. B. increase the price of sushi-on-a-stick so that the marginal revenue product increases to $12.00 per hour. C. decrease employment until the MRP of labor equals $12.00. D. increase employment until the MRP of labor equals $12.00.