1) A portion of a worker's earnings is economic rent if the worker
A. would accept a small reduction in pay without quitting.
B. was the last person hired at the going wage rate.
C. has skills that make him more productive than an unskilled worker.
D. has been on the job for at least a year.
2) Pure economic rent is a payment to a resource that
A. has a negative opportunity cost.
B. has a perfectly elastic demand.
C. has a high opportunity cost.
D. has a perfectly inelastic supply.
3) Which of the following is a disadvantage of the corporate form of business organization?
A. Unlimited liability
B. Limited liability
C. Limited financing
D. Double taxation
4) Pure economic rent is
A. a payment to a resource owner over and above what is necessary to keep the resource in its current use.
B. a payment to a resource owner just sufficient to keep its supply constant.
C. the inverse of economic profit.
D. the competitive rental rate on capital.
5) A business which is owned by two or more people is called a
A. corporation.
B. proprietorship.
C. partnership.
D. none of the above.