"Economic rent reflects a waste of resources." Do you agree or disagree? Explain

What will be an ideal response?


Disagree. Economic rent is indeed a payment for the use of a resource above its opportunity cost. However, as determined by the demand for the resource, economic rent directs the resource to its highest-valued or most efficient use and thus is not a waste of resources.

Economics

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The Shipbreakers of Alang arouse the ire of Greenpeace because of

A) India's non-repentant nuclear stance. B) India's import-competing industrialization policies. C) the difficulty of avoiding ship accidents between Greenpeace's sailboat and the reconstructed Container ships of Alang. D) the large amount of pollution associated with the operations at Alang. E) their competition with capital-intensive industries.

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The opportunity cost of holding excess reserves is equal to

A. the federal funds rate. B. the federal funds rate minus the discount rate. C. the discount rate. D. none of the above.

Economics

An increase in consumers' demand for espresso will lead to an increase in ________, while an increase in the number of firms producing espresso will lead to a(n) ________.

A. supply; decrease in supply B. supply; increase in quantity supplied C. quantity supplied; decrease in supply D. quantity supplied; increase in supply

Economics