If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost.
B) the price of the resource equals its opportunity cost.
C) the price of the resource is above its opportunity cost.
D) the resource has no opportunity cost.
Answer is C) the price of the resource is above its opportunity cost.
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The slope of the short-run aggregate supply curve depends on how sharply: a. the marginal cost of production rises as real GDP expands. b. the average cost of production rises as real GDP expands. c. real GDP increases as the price level rises
d. nominal GDP increases as the price level rises. e. product prices change as the price level rises.
Which of the following is a definition of the consumption function?
a. A functional relationship between real consumption spending and real disposable income b. A functional relationship between real consumption spending and the interest rate c. A functional relationship between real consumption spending and wealth d. A functional relationship between real consumption spending and total spending e. A functional relationship between real consumption spending and net taxes