The resource income earned by those who supply labor services is called
A) profit. B) bonus.
C) stock options. D) wages and salaries.
D
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Sandy derives utility from consuming "all other goods," g, and clean air (measured by particulate matter removed per m3), a, as measured by the utility function U(g,a) = g0.6a0.4. The price of "all other goods" is $20 and the price of clean air (abatement) equals $10. Brian is the only other consumer in the market for clean air and demands 10 units of clean air. What is the market demand for
clean air? A) Total market demand is 14 units of clean air. B) Total market demand is 12 units of clean air. C) Total market demand is 10 units of clean air. D) Total market demand is 16 units of clean air.
Capital flight refers to:
A. the tendency of large corporations of IACs to build new plants in the DVCs because labor is cheaper. B. DVC citizens accumulating or investing their savings in the IACs. C. the high international mobility of speculative funds caused by variations in exchange rates. D. the tendency of DVCs to overinvest in commercial aircraft.