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

question 2

Multiple Choice

If all of the returns to a resource are in the form of economic rent,

• A)the price of that resource is determined exclusively by supply
• B)the price of that resource is determined exclusively by demand
• C)the price and quantity of that resource are determined exclusively by supply
• D)the price and quantity of that resource are determined exclusively by demand
• E)the equilibrium price is zero

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Definitions:

Tariff Rates

Taxes imposed on imported or sometimes exported goods, with the aim of protecting domestic industries, generating revenue, or regulating trade.

Pendleton Civil Service Act

A federal law passed in 1883 that mandated positions within the federal government be awarded on the basis of merit instead of political affiliation, significantly curbing the spoils system.

President Rutherford B. Hayes

The 19th President of the United States, serving from 1877 to 1881, known for ending the Reconstruction era through the Compromise of 1877.

National Harmony

The state or condition where a nation's citizens or regions achieve social cohesion and cooperation, often pursued through policies aimed at reducing divisions or conflicts.