How can bonuses to exceptional employees be considered economic rents?
The payment for any input can be divided into two parts. The first part is simply the minimum payment needed to acquire the input. If workers do not receive at least this first part, they will not supply their labor. The second part of the payment is a bonus that does not go to every input, but only to inputs of particularly high quality. Payments to workers with exceptional natural skills are a good illustration of the generalized rent concept. Because these bonuses are like the extra payment for a better piece of land, they are called economic rents.
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Monetarists argue that the amount of money the public will want to hold depends primarily on the level of:
A. Nominal GDP B. Investment C. Consumption D. Prices
There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. This statement is best described as
A. a positive statement. B. a normative statement. C. a marginal statement. D. an implication of an efficient market.