If the supply of oceanfront lots is fixed and perfectly inelastic,
a. the demand for the resource determines its price and the level of economic rent
b. the supply of the resource determines its price and the level of economic rent
c. the supply of the resource determines its price and the demand for the resource determines the level of economic rent
d. the demand for the resource determines its price and the supply of the resource determines the level of economic rent
e. the supply curve is horizontal
A
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Which of the following are arguments against taxing unrealized capital gains?
a. A person might have to sell an asset in order to pay the tax on it. b. It might be difficult to determine the increase in valuation. c. It increases the incentive to hold onto appreciated assets. d. a and b e. b and c
The main shortcoming of the market, in the view of many,
a. lies in the arena of justice and injustice. b. lies in the area of consumer goods production. c. is its inability to stimulate the creation of new products. d. is its drag on growth in productivity.