A portion of a worker's earnings is rent if
A) the worker was the last person hired at the going wage rate.
B) the supply curve of labor is horizontal.
C) the worker would accept a small wage cut without quitting or working for someone else.
D) the worker has industry-specific skills.
C
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Which of the following is an important difference between police protection and food and explains why one is commonly provided by government while the other is not?
A) Food can easily be withheld from people who don't pay for it. B) Food is not a traditional concern of government. C) Food is too vital to be entrusted to government. D) Food producers form a powerful political lobby. E) Food provided through government would be inefficient.
Typical estimates of the sacrifice ratio suggest that about 10 percent of annual output has to be given up in order to reduce the inflation rate from
a. 8 percent to 4 percent. b. 8 percent to 5 percent. c. 7 percent to 5 percent. d. 7 percent to 6 percent.