Consider Two Resource Markets in Which the Demand Curves Slope

question 85

Multiple Choice

Consider two resource markets in which the demand curves slope downward.In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired.In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired.Which of the following is true?

• A)All of the resource earnings in market A are opportunity costs.
• B)All of the resource earnings in both markets are opportunity costs.
• C)All of the resource earnings in market B are opportunity costs.
• D)None of the resource earnings in either market is an opportunity cost.
• E)None of the resource earnings in either market is economic rent.

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Definitions:

Bowel Sounds

The noises made by the movement of the gastrointestinal tract as it propels contents through the gut, used to assess intestinal activity.

Tympanic Membranes

Thin layers of tissue that separate the outer ear from the inner ear, also known as eardrums, which vibrate in response to sound waves.

Auricle Upward

Movement or orientation of the ear or external part of the ear upwards.

Otoscope

Instrument with a special ear speculum used to examine the deeper structures of the external and middle ear.