"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.
You might also like to view...
According to the Bureau of Labor Statistics, to be officially unemployed a person must
A. be in the labor force. B. be waiting to be called back from a layoff. C. have lost a job. D. be 21 years of age or older.
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.
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.
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