When Does the Entire Earning of a Resource Comprise of Economic

question 47

Multiple Choice

When does the entire earning of a resource comprise of economic rent?

• A)When the supply curve of the resource is relatively elastic
• B)When the supply curve of the resource is horizontal
• C)When the supply curve of the resource is vertical
• D)When the supply curve of the resource is relatively inelastic
• E)When the supply curve of the resource is a ray through the origin

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Definitions:

Expected

Refers to the anticipated outcome, value, or occurrence based on probability or prior evidence.

Increase

To become or cause to become greater in size, amount, number, or degree.

Consumer Incomes

The total amount of income received by consumers, influencing their purchasing power and demand for goods and services.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrasting with normal goods.