Economic rent serves
A. no useful function in a modern economy.
B. an allocative function by guiding available supplies to the most efficient use.
C. a descriptive function by making some wealthier than others, but serves no allocative function.
D. only to make the rich richer and the poor poorer.
Answer: B
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The cost-benefit analysis on the financial impact smokers have on society conducted by Vanderbilt professor Kip Viscusi concludes that
A) smokers provide a net public service to society. B) smokers are a financial drain on society. C) smokers contribute less to retirement and pension programs than they receive from those programs. D) smokers account for about 32 cents of net cost to everyone else in society for every pack of cigarettes smoked.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.