Question 1

Small loans carry higher interest rates than large loans because they are

Accepted Answer

A)  less risky. 
B)  pure loans. 
C)  more productive. 
D)  more expensive to administer. 
E)  very liquid. 
A)  less risky. 
B)  pure loans. 
C)  more productive. 
D)  more expensive to administer. 
E)  very liquid.

Question 2

The following question are based on the following diagram, representing the supply and demand curves for an input:
  
-If the demand curve is D₀,a tax on the income received by the supplier of this input

Accepted Answer

A)  increases the demand to D₁. 
B)  reduces the quantity sold of the input. 
C)  raises the quantity sold of the input. 
D)  raises the equilibrium price of the input. 
E)  has no effect on the equilibrium price and quantity of the input. 
A)  increases the demand to D₁. 
B)  reduces the quantity sold of the input. 
C)  raises the quantity sold of the input. 
D)  raises the equilibrium price of the input. 
E)  has no effect on the equilibrium price and quantity of the input.

Question 3

One who accepts the risks inherent in introducing and commercializing a new product or manufacturing process is called a(n)

Accepted Answer

A)  socialist. 
B)  innovator. 
C)  banker. 
D)  rentier. 
E)  economist. 
A)  socialist. 
B)  innovator. 
C)  banker. 
D)  rentier. 
E)  economist.

Question 4

Approximately what percent of the gross domestic product is before-tax corporation profits?

Accepted Answer

A)  2 to 3 percent 
B)  5 to 10 percent 
C)  15 to 25 percent 
D)  33 to 50 percent 
E)  over 50 percent 
A)  2 to 3 percent 
B)  5 to 10 percent 
C)  15 to 25 percent 
D)  33 to 50 percent 
E)  over 50 percent

Question 5

If the permanent annual rate of return on an asset that costs $20,000 is 8 percent,then each year the owner of the asset will earn

Accepted Answer

A)  $20,000. 
B)  $16,000. 
C)  $4,000. 
D)  $1,600. 
E)  $800. 
A)  $20,000. 
B)  $16,000. 
C)  $4,000. 
D)  $1,600. 
E)  $800.

Question 6

The price of an input,fixed in supply,its limits established by nature,is called

Accepted Answer

A)  land. 
B)  profit. 
C)  interest. 
D)  entitlements. 
E)  rent. 
A)  land. 
B)  profit. 
C)  interest. 
D)  entitlements. 
E)  rent.

Question 7

Capitalization is

Accepted Answer

A)  the process of accumulating capital. 
B)  a measure of the degree of roundabout production. 
C)  the process of computing the present value of the future income stream produced by an asset. 
D)  a form of labor's surplus value kept by business. 
E)  a way of measuring the value of capital worn out in a year. 
A)  the process of accumulating capital. 
B)  a measure of the degree of roundabout production. 
C)  the process of computing the present value of the future income stream produced by an asset. 
D)  a form of labor's surplus value kept by business. 
E)  a way of measuring the value of capital worn out in a year.

Question 8

A firm typically undertakes a project when the

Accepted Answer

A)  firm has enough money to spend on the project. 
B)  interest rate exceeds the profit rate. 
C)  interest rates are rising. 
D)  rate of return exceeds the interest rate at which it can borrow. 
E)  project's rate of return is greater than zero. 
A)  firm has enough money to spend on the project. 
B)  interest rate exceeds the profit rate. 
C)  interest rates are rising. 
D)  rate of return exceeds the interest rate at which it can borrow. 
E)  project's rate of return is greater than zero.

Question 9

Money is demanded in the form of loanable funds because it

Accepted Answer

A)  possesses intrinsic value. 
B)  can provide command over resources. 
C)  is not as liquid as other forms of capital. 
D)  grows in value as it is held over time. 
E)  has no opportunity costs associated with holding it. 
A)  possesses intrinsic value. 
B)  can provide command over resources. 
C)  is not as liquid as other forms of capital. 
D)  grows in value as it is held over time. 
E)  has no opportunity costs associated with holding it.

Question 10

The interest rate earned on an investment in an asset is called

Accepted Answer

A)  the capital output ratio. 
B)  depreciation. 
C)  the risk quotient. 
D)  capitalization. 
E)  the rate of return. 
A)  the capital output ratio. 
B)  depreciation. 
C)  the risk quotient. 
D)  capitalization. 
E)  the rate of return.

Small loans carry higher interest rates than large loans because they are

The following question are based on the following diagram, representing the supply and demand curves for an input: -If the demand curve is D₀,a tax on the income received by the supplier of this input

One who accepts the risks inherent in introducing and commercializing a new product or manufacturing process is called a(n)

Approximately what percent of the gross domestic product is before-tax corporation profits?

If the permanent annual rate of return on an asset that costs $20,000 is 8 percent,then each year the owner of the asset will earn

The price of an input,fixed in supply,its limits established by nature,is called

Capitalization is

A firm typically undertakes a project when the

Money is demanded in the form of loanable funds because it

The interest rate earned on an investment in an asset is called

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 11: Interest,rent,and Profit

Small loans carry higher interest rates than large loans because they are

The following question are based on the following diagram, representing the supply and demand curves for an input: -If the demand curve is D₀,a tax on the income received by the supplier of this input

One who accepts the risks inherent in introducing and commercializing a new product or manufacturing process is called a(n)

Approximately what percent of the gross domestic product is before-tax corporation profits?

If the permanent annual rate of return on an asset that costs $20,000 is 8 percent,then each year the owner of the asset will earn

The price of an input,fixed in supply,its limits established by nature,is called

Capitalization is

A firm typically undertakes a project when the

Money is demanded in the form of loanable funds because it

The interest rate earned on an investment in an asset is called

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters