Which of the following is not likely to incorporate a great deal of economic rent?
a. the salary paid to Paula Abdul as a judge on American Idol
b. the price for dinner at a nice restaurant in a major city
c. rental of beachfront property during the summer
d. sale of piece the parquet floor previously in the famous Boston Garden
b
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Assume that production of a good imposes external costs on others. The equilibrium price will be ____ and the equilibrium quantity ____ for efficient resource allocation
a. too high; too high. b. too high; too low. c. too low; too high. d. too low, too low.
If the relative price of one unit of good X is 5 units of good Y, then it follows that the absolute price of good X can be __________ and the absolute price of good Y can be __________
A) $20,000; $10,000 B) $40,000; $8,000 C) $30,000; $5,0000 D) $5,000; $40,000 E) a and c