When a Resource Has a Perfectly Inelastic Supply Curve

question 265

Multiple Choice

When a resource has a perfectly inelastic supply curve

• A) the amount of economic rent for this resource is determined by its supply.
• B) the amount of economic rent for this resource is determined by demand for the resource.
• C) the amount of economic rent for this resource is determined by the government.
• D) there is no economic rent being earned by this resource.

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Definitions:

Constant Opportunity Cost

A theoretical concept where the opportunity cost of producing a good remains constant as more of the good is produced.

Decrease In Unemployment

A reduction in the number of unemployed individuals in the workforce, often indicating economic growth.

Production Possibilities Frontier

A visual depiction illustrating the highest achievable production combinations of two products or services within an economy, assuming all resources are completely and effectively used.

Shift Outward

An economic term describing the expansion of a country's production possibility frontier, indicating increased capacity to produce goods and services.