If the Supply Curve for a Factor Is Perfectly Elastic,the

question 100

Multiple Choice

If the supply curve for a factor is perfectly elastic,the payments to the factor are

• A)partly economic rent and partly transfer earnings.
• B)an unnecessary tax on the factor.
• C)wholly economic rent.
• D)neither economic rent nor transfer earnings.
• E)wholly transfer earnings.

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Definitions:

Imports

Goods and services purchased from other countries to be sold or used domestically.

Exports

Exports refer to goods or services produced in one country and sold to buyers in other countries, contributing to the exporting country's economy.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Manufacturing

The activities and processes used in making tangible products; also called production.