Pure economic rent is a payment to a resource that

A. has a perfectly inelastic supply.
B. has a negative opportunity cost.
C. has a perfectly elastic demand.
D. has a high opportunity cost.


Answer: A

Economics

You might also like to view...

Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower

Economics

An increase in the demand for loanable funds, other things constant, will increase the interest rate

a. True b. False Indicate whether the statement is true or false

Economics

If the Fed wants to decrease the money supply, it can __________ the required reserve ratio, conduct an open market __________, or __________ the discount rate

A) raise; purchase; lower B) lower; purchase; lower C) raise; sale; raise D) lower; sale; lower E) none of the above

Economics

Which of the above diagrams illustrate(s) the effect of an increase in incomes on the market for secondhand clothing?

A. A only B. B only C. C only D. B and C

Economics