Explain the circumstances under which some component of labor income is economic rent
Economic rent is a payment to a factor above the opportunity cost of the resource. If an individual has an ability that other workers cannot acquire or a skill which is very difficult to duplicate, then the income earned by that individual will contain an element of economic rent as a return to that unique ability or skill. The supply of labor of such individuals would be described as highly inelastic so that increases in demand results in relatively large increases in earnings.
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If the price of a video download is below its equilibrium price, the quantity supplied is ________ than the quantity demanded
If the price of a video download is above its equilibrium price, the quantity supplied is ________ than the quantity demanded. A) less; greater B) greater; less C) less; less D) greater; greater
Which of the following can shift the labor demand curve to the right?
a. Decrease in product price. b. Increase in wages. c. Decrease in wages. d. Decrease in the MP. e. Increase in productivity.