If All of the Returns to a Resource Are in the Form

question 91

Multiple Choice

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

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Definitions:

Memory

The processes by which information is encoded, stored, and retrieved.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, preventing them from seeing potential alternative uses.

Mental Set

A tendency to approach situations in a certain way because that method worked in the past, possibly hindering the ability to find alternative solutions.

Cognitive Map

A mental representation of the layout of one’s environment.