Pure economic rent is
A. a payment to a resource owner just sufficient to keep its supply constant.
B. a payment to a resource owner over and above what is necessary to keep the resource in its current use.
C. the competitive rental rate on capital.
D. the inverse of economic profit.
Answer: B
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As the price of good A rises, the demand for good B rises. Therefore, goods A and B are
A) normal goods. B) inferior goods. C) substitutes. D) complements. E) none of the above
The diagram in panel b (graph) is an example of
A. a demand curve B. the substitution effect C. the income effect D. a demand schedule
Inflation is undesirable because it:
A. distorts the information value of prices. B. always makes the nation poorer. C. redistributes income from those who can raise prices to those who cannot. D. makes everyone worse off.
The British economist most often associated with the issue of economic rent for land was
A) John Maynard Keynes. B) Jeremy Bentham. C) A. W. Phillips. D) David Ricardo.