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

question 24

Multiple Choice

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

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

Understand the concept of elasticity in economic terms, including price elasticity of demand, income elasticity, and cross-price elasticity.

Calculate and interpret the price elasticity of demand using given data.

Analyze the effects of taxes on market outcomes, including the impact on prices and quantities in supply and demand curves.

Identify the characteristics of different goods (normal, inferior, substitutes, and complements) based on their income and cross-price elasticities.

---

Definitions:

Hostility

A state of anger and aggression towards someone or something.

Prejudice

Preconceived opinion or judgment that is not based on reason or actual experience.

Discrimination

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

Robber's Cave Experiment

A social psychology experiment that demonstrated how conflict can be induced and reduced among groups through cooperation toward shared goals.