Under what circumstances will the economic rent earned by a factor of production always be zero?
A) Infinitely inelastic supply curve
B) Infinitely elastic supply curve
C) Somewhat inelastic supply curve
D) Elastic demand curve
B
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Refer to Figure 4-6. What is the value of the deadweight loss after the imposition of the price floor?
A) $600 B) $1,800 C) $2,700 D) $3,300
Refer to the accompanying figure. 
Suppose that James' initial budget constraint shifts from BC1 to BC2, and as a result, his best affordable bundle moves from point A to point B. According to this figure:
A. potatoes are an inferior good. B. spinach is an inferior good. C. spinach and potatoes are complements. D. spinach and potatoes are substitutes.
As prices in Zimbabwe began to rise:
A. Mugabe was able to pay bribes with the new money and then started the process of reducing inflation. B. people immediately lost faith in the Zimbabwean dollar, causing its value to plummet to zero. C. people updated their inflation expectations so that future increases in the money supply were impossible. D. the government had to print even more money to continue to buy just as many goods as it did before.
If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's marginal cost curve will shift ________ and the industry supply curve will shift to the ________.
A. down; left B. up; right C. up; left D. down; right