Which of the following is not how economists describe the term "economic rent?:
A. The gains that workers and owners of capital receive from supplying their labor or machinery in factor markets.
B. The producer surplus in output markets.
C. The rental price of a factor of production minus the cost of supplying it.
D. The total revenue that a factor of production earns its owner.
D. The total revenue that a factor of production earns its owner.
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Vertical equity refers to the notion that individuals at all levels should be taxed equally.
Answer the following statement true (T) or false (F)
Which of the following examples indicates an economic situation where the highest amount of money is demanded?
a. The interest rate for CDs is 6 percent. b. The interest rate for saving accounts is 4 percent. c. The interest rate for U.S. Treasury bills is 8 percent. d. The interest rate for municipal bonds is 2 percent.
If there is a sole producer of a good, and he faces no threat of competition, it is likely that:
A. government intervention will have no impact on the market. B. government intervention will increase total surplus. C. government intervention will make things better for buyers and sellers. D. government intervention will raise prices to consumers.
At long-run equilibrium in monopolistic competition, there is:
A. Allocation efficiency B. Productive efficiency C. Both allocation and productive efficiency D. Neither allocation nor productive efficiency