Question 1

Which factor receives the profit from production?

Accepted Answer

A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship 
A)  land 
B)  labor 
C)  capital 
D)  entrepreneurship

Question 2

When determination of rent is left to the market,

Accepted Answer

A)  that rent price is almost entirely determined by the supply side. 
B)  that price can settle at politically unpopular levels. 
C)  land is fairly distributed among the members of society. 
D)  the supply of land will be perfectly elastic. 
A)  that rent price is almost entirely determined by the supply side. 
B)  that price can settle at politically unpopular levels. 
C)  land is fairly distributed among the members of society. 
D)  the supply of land will be perfectly elastic.

Question 3

Define the following terms briefly and concisely and indicate their importance to the study of economics.
a.entrepreneurship
b.investment
c.capital
d.innovation
e.discounting

Accepted Answer

a.Entrepreneurship is the act of startin

Question 4

The rate of interest is the price at which money is borrowed and loaned.

Accepted Answer

A) True 
 B)False

Question 5

The interest rate is the

Accepted Answer

A)  rate of investment. 
B)  price of credit. 
C)  rate of return on investment in capital goods. 
D)  expected rate of inflation. 
A)  rate of investment. 
B)  price of credit. 
C)  rate of return on investment in capital goods. 
D)  expected rate of inflation.

Question 6

On the surface, usury laws are designed to protect consumers from exorbitant interest rates.

Accepted Answer

A) True 
 B)False

Question 7

If investment is zero, the capital stock

Accepted Answer

A)  continues to flow. 
B)  falls to zero. 
C)  remains constant. 
D)  grows steadily. 
A)  continues to flow. 
B)  falls to zero. 
C)  remains constant. 
D)  grows steadily.

Question 8

Mr.Calhoun owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years.Suddenly he was getting offers from cotton farmers to lease his land.What is the most likely explanation of this?

Accepted Answer

A)  The price of cotton went down. 
B)  The physical productivity of the land went up. 
C)  Taxes on land went up. 
D)  The price of cotton went up. 
A)  The price of cotton went down. 
B)  The physical productivity of the land went up. 
C)  Taxes on land went up. 
D)  The price of cotton went up.

Exam 19: Pricing the Factors of Production

Which factor receives the profit from production?

When determination of rent is left to the market,

Define the following terms briefly and concisely and indicate their importance to the study of economics. a.entrepreneurship b.investment c.capital d.innovation e.discounting

The rate of interest is the price at which money is borrowed and loaned.

The interest rate is the

On the surface, usury laws are designed to protect consumers from exorbitant interest rates.

If investment is zero, the capital stock

Mr.Calhoun owned a worn-out piece of farmland for growing cotton, which he had been unable to rent for years.Suddenly he was getting offers from cotton farmers to lease his land.What is the most likely explanation of this?

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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