Answer the following statements true (T) or false (F)
1. Economic rent is the payment made to a resource which has a perfectly inelastic demand
curve.
2. Reducing the payment of rent to land-owners will decrease the quantity of land supplied.
3. As viewed by society, economic rent is not a cost but rather a surplus payment.
4. The demand side, not supply, is the major factor determining how high land's rent will be.
5. Money is an economic resource referred to as capital.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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Marginal cost is equal to the
A) change in total cost divided by the change in output. B) change in average total costs divided by the change in output. C) change in average product divided by the change in output. D) change in total product divided by the change in output.
Government is inherently bad.
A. True B. False C. Uncertain
Suppose that price is below the minimum average total cost but above the minimum average variable cost. In the short run, a firm that is a price taker would:
A. immediately shut down and get out of the industry. B. continue to produce a quantity such that marginal revenue equals marginal cost. C. shut down temporarily, in hopes of restarting in the near future. D. cut price and expand output in hopes of achieving economies of scale
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.