When a factor of production is in fixed supply, the revenue it earns
a. consists entirely of rent.
b. is an efficiency wage.
c. is independent of how the resource is used.
d. consists entirely of deadweight loss.
a. consists entirely of rent.
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A reserve requirement of 40 percent would mean that each dollar of reserves could support ____ of demand deposits
a. $0.40 b. $1.60 c. $2.50 d. $4.00
In a world where capital moves rapidly across national boundaries, if a larger budget deficit leads to higher real interest rates,
a. there will be an inflow of foreign capital, which will cause the dollar to appreciate and net exports to decline. b. there will be an outflow of foreign capital, which will cause the dollar to depreciate and net exports to increase. c. there will be an inflow of foreign capital, which will cause the dollar to depreciate and net exports to increase. d. there will be an outflow of foreign capital, which will cause the dollar to appreciate and net exports to decline.