Borrowers:
A. gain from inflation, as the value of their debt decreases.
B. lose with inflation, as the value of their debt decreases.
C. gain from inflation, as the value of their debt increases.
D. lose with inflation, as the value of their debt increases.
A. gain from inflation, as the value of their debt decreases.
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Economic rents can lead to large wage differentials
a. True b. False Indicate whether the statement is true or false
In 2009 in the United States, net domestic product at factor cost was $11,091 billion. Additionally, rent was $2,000 billion, profits were $1,000 billion, and interest was $358 billion. Hence wages were
A) $7,733 billion. B) $9,091 billion. C) $10,091 billion. D) $8,091 billion. E) $12,091 billion.
Other things constant, as the price of a resource increases,
a. the quantity of the resource demanded falls. b. the quantity of the resource supplied falls. c. the price of the product the resource helps to produce falls. d. there is less of an incentive for users of the resource to find substitute resources.
If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be
A. 2 units of outboard motors.
B. 4 units of outboard motors.
C. 12 units of outboard motors.
D. 11 units of robots.