People earn an income by selling their resources or by using them. Owners of land receive _____, while the owners of capital receive _____.
(a) rent; profit
(b) wage; profit
(c) profit; rent
(d) rent; interest
(e) interest; profit
Answer: (d) rent; interest
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Which of the following is not an institutional constraint that limits the United States' production possibilities?
A. Blue laws that restrict bars and liquor stores from opening on Sunday B. Restrictions on child labor C. The fact that Americans dislike working at night or on the weekends D. Workers who are "in between" jobs
Refer to Scenario 7.3. Suppose that your firm decides to double its output to 400. To achieve this level of output the firm will have to:
A) exactly double its inputs. B) more than double its inputs. C) less than double its inputs.
Suppose the National Bank has total cash reserves of $2,000 and has $5,000 in total deposits. If its total excess reserves are $1,250, then the reserve requirement is equal to:
a. 25 percent. b. 15 percent. c. 10 percent. d. 5 percent. e. 20 percent.
Many European countries are now requiring that data for an economic evaluation be collected simultaneously with the clinical trials conducted for pharmaceutical approval. This practice is so common that it is being referred to as:
a. pharmacoeconomics. b. clinical economics. c. the fourth hurdle. d. randomized control trials. e. phase III economics