Economic rent is:
A. the difference between the payment made to the owner of a factor of production and the owner's reservation price.
B. sometimes higher and sometimes lower than the owner's reservation price.
C. the amount people pay for an apartment in a perfectly competitive market.
D. the payment made to the owner of a factor of production, which is usually equal to the owner's reservation price.
Answer: A
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M2 includes
A) large-denomination time deposits. B) institutional MMMFs. C) commercial paper. D) M1.
If fiscal policy makers increase aggregate demand in an attempt to decrease the unemployment rate below the natural rate of unemployment, then: a. the potential GDP will decrease
b. the potential GDP will increase. c. the only lasting impact of the policy is a higher price level. d. the only lasting impact of the policy is higher real GDP. e. the only lasting impact of the policy is lower real GDP.