Profits may exist as the result of a uncertainty b

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122.Profits may exist as the result ofa.uncertainty.b.alertness to arbitrage opportunities.c.innovation.d.all of the abovee.none of the aboveANS: DDIF:Easy
123.Profits differ from the other factor payments in that they
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Chapter 16 / Exercise 1
Exploring Microeconomics
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d.a and be.all of the aboveANS: DDIF:Moderate124.If medical research were to find that grain consumption lowers human life expectancy, agriculturalland rents wouldDIF:Easy
125.The upward-sloping supply of loanable funds curve assumes thatDIF:Moderate
126.As the interest rate rises, the opportunity cost ofa.future consumption rises.b.present consumption rises.c.investing in roundabout methods of production rises.d.lending money rises.ANS: BDIF:Moderate
127.Which of the following would increase the economic rent of a factor, the supply curve of which isperfectly inelastic?DIF:Moderate
128.The nominal interest rate will rise if theDIF:Moderate
Exhibit 11-4111
129.Refer to Exhibit 11-4. At the equilibrium point shown, what is the pure economic rent on land?DIF:Moderate
130.Refer to Exhibit 11-4. Assume a per acre tax, T, is imposed on land use. The rent (per acre) of landservices willa.rise from R1to R1+ T.b.fall from R1to R1- T.c.remain unchanged at R1.d.fall to 0.ANS: BDIF:Moderate
131.Refer to Exhibit 11-4. If a per acre tax, T, is imposed on land use, the pure economic rent on land willDIF:Moderate
132.When someone wins a lottery jackpot they are often given the choice between receiving their winningsover some period of time or receiving less money but receiving it all at once. It makes the mosteconomic sense toDIF:Moderate
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Term
Spring
Professor
Dungan
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The document you are viewing contains questions related to this textbook.
Exploring Microeconomics
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Chapter 16 / Exercise 1
Exploring Microeconomics
Sexton
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