What is the difference between society’s view and an individual firm’s view of economic rent?
What will be an ideal response?
From society’s perspective economic rent is a surplus payment. It is a payment above and beyond what is necessary to get use of the resource. From a firm’s perspective economic rent is a cost. Firms must pay economic rent to bid the land it wants to use for its production away from alternative uses.
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When the demand for a good is perfectly inelastic, the entire sales tax is paid by the sellers
a. True b. False Indicate whether the statement is true or false
A bank's reserve ratio is 5 percent and the bank has $1,000 in deposits. It's reserves amount to
a) $5. b) $50. c) $95. d) $950.
What percentage of Americans will find a new job within 14 weeks of being unemployed?
a. 27.8
b. 35.7
c. 63.5
d. 78.4
According to the text, _________ is a good example of positive institutional change and _________ is an example of destructive institutional change in regard to economic and political institutions.
a. Atlanta, Detroit b. China, Zimbabwe c. Mexico, New Zealand d. Indiana, Missouri