Question 1

The one feature of capital that makes it unlike most inputs is that

Accepted Answer

A) it is durable. 
B) it generates economic rents. 
C) it is nondepletable. 
D) it requires comparing cash flows across different periods. 
A) it is durable. 
B) it generates economic rents. 
C) it is nondepletable. 
D) it requires comparing cash flows across different periods.

Question 2

The derived demand for borrowed funds has the characteristic negative slope of any demand curve.

Accepted Answer

A) True 
 B)False

Question 3

The difference in values between money today and money in the future is lower when the rate of interest is higher.

Accepted Answer

A) True 
 B)False

Question 4

No economist today would claim that

Accepted Answer

A) marginal productivity analysis is either just or unjust. 
B) the marginal productivity theory of distribution is a theory of the demand side of the pertinent market. 
C) payments are made not to factors of production but to the people who happen to own them. 
D) a productive input's MRP depends in part on how much of it is employed. 
A) marginal productivity analysis is either just or unjust. 
B) the marginal productivity theory of distribution is a theory of the demand side of the pertinent market. 
C) payments are made not to factors of production but to the people who happen to own them. 
D) a productive input's MRP depends in part on how much of it is employed.

Question 5

Interest is the payment for the use of

Accepted Answer

A) borrowed funds. 
B) natural resources. 
C) labor. 
D) any factor of production. 
A) borrowed funds. 
B) natural resources. 
C) labor. 
D) any factor of production.

Question 6

Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.

Accepted Answer

A) True 
 B)False

Question 7

Regulations to prevent Usury are meant to

Accepted Answer

A) limit consumption of depletable resources. 
B) control rents from increasing. 
C) cap the cost of borrowing. 
D) provide a living wage. 
A) limit consumption of depletable resources. 
B) control rents from increasing. 
C) cap the cost of borrowing. 
D) provide a living wage.

Question 8

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 9

Almost all of the rent that tenants pay to landlords of apartments buildings is economic rent .

Accepted Answer

A) True 
 B)False

Question 10

If the interest rate is positive, the present value of $10 to be received in the future is

Accepted Answer

A) less than $10. 
B) equal to $10. 
C) more than $10. 
D) Any of the above is possible, depending on the interest rate and when the payment is to be received. 
A) less than $10. 
B) equal to $10. 
C) more than $10. 
D) Any of the above is possible, depending on the interest rate and when the payment is to be received.

Question 11

The demand curve for loanable funds is downward sloping because

Accepted Answer

A) people save more at higher interest rates. 
B) more investments are profitable at low interest rates than at high interest rates. 
C) future income is more valuable now at higher interest rates than at low interest rates. 
D) Usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates. 
A) people save more at higher interest rates. 
B) more investments are profitable at low interest rates than at high interest rates. 
C) future income is more valuable now at higher interest rates than at low interest rates. 
D) Usury laws increase the quantity of funds demanded at low interest rates but do not affect the quantity of funds demanded at high interest rates.

Question 12

What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?

Accepted Answer

There are three oft-cited factors that c

Question 13

Which is not a reason the demand curve for loanable funds slopes down?

Accepted Answer

A) The value of the MRP in terms of today's money shrinks as the interest rate rises. 
B) Future returns must be discounted more when the interest rate rises. 
C) As the interest rate rises, more and more investments become unprofitable. 
D) Production becomes more profitable in the future, reducing required inputs today. 
A) The value of the MRP in terms of today's money shrinks as the interest rate rises. 
B) Future returns must be discounted more when the interest rate rises. 
C) As the interest rate rises, more and more investments become unprofitable. 
D) Production becomes more profitable in the future, reducing required inputs today.

The one feature of capital that makes it unlike most inputs is that

The derived demand for borrowed funds has the characteristic negative slope of any demand curve.

The difference in values between money today and money in the future is lower when the rate of interest is higher.

No economist today would claim that

Interest is the payment for the use of

Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.

Regulations to prevent Usury are meant to

If investment is zero, the capital stock

Almost all of the rent that tenants pay to landlords of apartments buildings is economic rent .

If the interest rate is positive, the present value of $10 to be received in the future is

The demand curve for loanable funds is downward sloping because

What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?

Which is not a reason the demand curve for loanable funds slopes down?

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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

Filters

Exam 18: Pricing the Factors of Production

The one feature of capital that makes it unlike most inputs is that

The derived demand for borrowed funds has the characteristic negative slope of any demand curve.

The difference in values between money today and money in the future is lower when the rate of interest is higher.

No economist today would claim that

Interest is the payment for the use of

Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.

Regulations to prevent Usury are meant to

If investment is zero, the capital stock

Almost all of the rent that tenants pay to landlords of apartments buildings is economic rent .

If the interest rate is positive, the present value of $10 to be received in the future is

The demand curve for loanable funds is downward sloping because

What are the factors that contribute to productivity growth in the market economy and which of them is considered most important?

Which is not a reason the demand curve for loanable funds slopes down?

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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

Externalities, Externaliteis, the Environment, and Natural Resources

Taxation and Resource Allocation

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

International Trade and Comparative Advantage

Contemporary Issues in the Us Economy

Filters