A dedicated professor loves being in the classroom and would teach for $50,000 per year, but she is actually paid $80,000 per year. This individual
A. receives economic rent of $30,000.
B. has an opportunity cost of $30,000.
C. receives economic rent of $130,000.
D. has an opportunity cost of $130,000.
Answer: A
You might also like to view...
Consider a small open economy with desired national saving of Sd = 20 + 200rw and desired investment of Id = 30 - 200rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0. (d) Now suppose something causes desired national saving to increase by 10, so that it is now Sd = 30 + 200rw. Repeat parts (a), (b), and (c). (e) Suppose, with desired national saving at its original level of Sd = 20 + 200rw, something causes desired investment to rise by 10, to Id = 40 - 200rw. Repeat parts (a), (b), and (c).
Different people may have different tastes, but their tastes do not change over time
a. True b. False
Experts in? hand-drawn animation who remain unemployed due to the film? industry's switch to? computer-generated animation are considered to be
What will be an ideal response?
Are Social Security payments included in GDP? Explain why or why not
What will be an ideal response?