The rent earned on marginal land is
a. zero.
b. the average of all qualities of land.
c. above the average of all qualities of land.
d. below the average of all qualities of land.
a
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A bank is insolvent when:
A) its total assets exceed its total liabilities. B) its stockholders' equity exceeds its total assets. C) its stockholders' equity exceeds its total liabilities. D) its total liabilities exceed its total assets.
Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
A) no relationship between the two curves. B) no tradeoff in either curve. C) a tradeoff in both curves. D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff. E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.
When firms have market power, it means that they:
A. are a price taker. B. can noticeably affect the market price. C. do not affect the market quantity offered for sale. D. can earn as much profit as they want.
Trade causes wages in countries with high productivity to increase and wages in countries with low productivity to decrease.
Answer the following statement(s) true (T) or false (F)