Suppose a retail store was offering 10% off list prices on all goods. The benefit of the 10% savings is:
A. unrelated to the list price of the good.
B. zero since costs and benefits shouldn't be measured proportionally.
C. positively related to the list price of the good.
D. negatively related to the list price of the good.
Answer: C
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The variable G considered in the model encompasses
A) government expenses on goods. B) government expenses on goods and services. C) government expenses on goods and services as well as transfers. D) government expenses on goods and services as well as transfers and public debt service.
Economic rent represents
a. a loss to society since resource owners do not earn it b. the difference between marginal revenue product and marginal resource cost c. a loss to resource owners who earn less than the market value of the resource d. any resource earnings less than that resource's opportunity cost e. any resource earnings greater than that resource's opportunity cost