Which of the following statements is correct?
A. Rent performs an incentive function, but not a rationing function
B. Wage rate does not perform an incentive function in the supply of labor
C. Profits are payments to capital resource owners
D. Demand is the "active," and supply the "passive," determinant of land rent
D. Demand is the "active," and supply the "passive," determinant of land rent
You might also like to view...
A technological breakthrough that increases the marginal productivity of capital would increase the
a. demand for loanable funds, leading to a lower equilibrium market interest rate b. supply of loanable funds, leading to a lower equilibrium market interest rate c. demand for loanable funds, leading to a higher equilibrium market interest rate d. supply of loanable funds, leading to a higher equilibrium market interest rate e. supply of loanable funds but have no impact on the equilibrium market interest rate
Capital, labor, and land
a. have derived demands. b. are factors of production. c. are inputs used in the production of goods and services. d. All of the above are correct.
What happens when consumers in the economy start to spend less, perhaps because they become worried about the future?
A. Savings rises, causing increases in investment that boost GDP. B. The demand for dollars falls, causing the exchange rate to fall and exports to rise. C. Prices fall, causing consumers to start spending again. D. The incomes of other people fall, causing those people to spend less as well.
Which of the following would occur if the marginal cost of extracting oil rose?
A. People would use more oil. B. Oil producers would increase their production of oil. C. People would use less oil. D. Oil company profits would rise.