A payment for the use of an input that exceeds the opportunity cost of the input is known as
A) real interest.
B) economic profit.
C) economic rent.
D) economic cost.
C
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Figure 5-16
Figure 5-16 shows Adam’s purchases of bananas and apples when apples cost $5 each and bananas $4 each. The information implies that Adam’s income
A. must be $9. B. must be $20. C. must be $40. D. cannot be determined without further information.
Which of the following is NOT considered a cash item by banks?
A) U.S. Treasury bills B) deposits at other banks C) deposits at the Federal Reserve D) vault cash
In 1914, Henry Ford increased his workers’ wages from $3 to $5 per day and succeeded in increasing his profits. Which of the following principles was he demonstrating?
a. efficiency wage b. relative price c. natural rate of unemployment d. potential output
If a positive externality were present in a market, the social benefit curve would be:
A. the same as the private demand curve. B. above the private demand curve. C. below the private demand curve. D. Cannot say without more information.