Profits, rents, interest, and royalties are examples of:
A. capital income.
B. labor income.
C. investment.
D. consumption.
Answer: A
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A nation's exports are NOT impacted by the multiplier effect
Indicate whether the statement is true or false
With rent seeking by a monopoly
A) the monopolist's average total costs will increase so that its average total cost curve is tangent to the demand curve at the profit-maximizing price. B) a monopoly uses all of what would be its economic profit to prevent other firms from taking its economic rent. C) the full deadweight loss of monopoly is larger than in the absence of rent seeking. D) All of the above answers are correct.
Diminishing marginal utility suggests that
a. more is always preferred to less. b. the well-being of society is maximized when the distribution of income is equal. c. the poor are less efficient at spending money than the rich. d. the poor receive more satisfaction from the last dollar spent than the rich.
In the above figure, the long-run equilibrium real GDP is
A. $10 trillion. B. $11 trillion. C. $12 trillion D. not displayed.