If all of the returns to a resource are in the form of economic rent,
a. the demand curve for that resource must be horizontal
b. the demand curve for that resource must be vertical
c. the supply curve of that resource must be horizontal
d. the supply curve of that resource must be vertical
e. the demand curve for that resource must be perfectly elastic
D
You might also like to view...
Economists often refer to the government revenue obtained from money creation as:
A) liquid revenue. B) windfall revenue. C) an inflation tax. D) a supplementary tax.
Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of 15 percent. If a borrower expects that the rate of inflation next year will be 10 percent and the actual rate of inflation next year is 12 percent:
a. neither the borrower nor the lender benefits from inflation. b. both the borrower and the lender lose from inflation. c. the borrower benefits from inflation, while the lender loses from inflation. d. the lender benefits from inflation, while the borrower loses from inflation.