All of the Payment to a Factor of Production Will

question 85

Multiple Choice

All of the payment to a factor of production will be economic rent when the factor of production has:

• A) an infinitely inelastic supply curve.
• B) an infinitely elastic supply curve.
• C) a constant, unit elastic supply curve.
• D) an infinitely inelastic demand curve.

---

Definitions:

Efficient Allocations

The optimal distribution of resources among competing uses to achieve the highest overall level of welfare or utility.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Government Intervention

Actions taken by a government to affect or interfere in an economy or market, usually in the interest of public welfare or economic stability.

Economic Systems

The organized way in which a country allocates resources and apportions goods and services in the national community.