Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 32, Problem 4E
To determine
Economic rent of a movie star who earns millions of dollar.
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How does the economist’s use of the term “rent” differ from everyday usage? Explain: “Though rent need not be paid by society to make land available, rental payments are useful in guiding land into the most productive uses.”
Nick's salary is pure economic rent. What does this statement imply about Nick's next best alternative salary?
Which of the following inputs do you think include relatively large economic rents in their earnings?
a. Nuts and bolts
b. Petroleum
c. A champion racehorse
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