If a Factor of Production with a Fixed Supply Is

question 110

Multiple Choice

If a factor of production with a fixed supply is earning $100 in its current use and its next best use would yield earnings of $80, the factor is earning a pure economic rent equal to

• A) $0.
• B) $20.
• C) $80.
• D) $180.

---

Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture.

Cognitive Source

The mental processes involved in the acquisition of knowledge, understanding through thought, experience, and the senses.

Ethnocentrism

The belief in the superiority of one's own ethnic group or culture over others.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.