Question 1

For a given future value and interest rate, the discounted present value will become larger as the time period gets longer.

Accepted Answer

A) True 
 B)False

Question 2

The demand side, not supply, is the major factor determining how high land's rent will be.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that in some year nominal interest rates are less than the rate of inflation. This means that

Accepted Answer

A)  money demand exceeds money supply. 
B)  real interest rates are negative. 
C)  real interest rates are positive and unusually high. 
D)  real interest rates exceed nominal interest rates. 
A)  money demand exceeds money supply. 
B)  real interest rates are negative. 
C)  real interest rates are positive and unusually high. 
D)  real interest rates exceed nominal interest rates.

Question 4

Economic profit might result from

Accepted Answer

A)  easy entry into industries. 
B)  dynamic change and uncertainty. 
C)  X-inefficiency. 
D)  a decline in entrepreneurship. 
A)  easy entry into industries. 
B)  dynamic change and uncertainty. 
C)  X-inefficiency. 
D)  a decline in entrepreneurship.

Question 5

Economic rent refers to the price paid for land and other natural resources that

Accepted Answer

A)  are fixed in total supply. 
B)  vary directly with their market prices. 
C)  vary inversely with their market prices. 
D)  are available in nearly unlimited quantities. 
A)  are fixed in total supply. 
B)  vary directly with their market prices. 
C)  vary inversely with their market prices. 
D)  are available in nearly unlimited quantities.

Question 6

The amount to which some current amount of money will grow as interest compounds over time is known as

Accepted Answer

A)  the future value of that sum of money. 
B)  the present value of that sum of money. 
C)  compound interest. 
D)  the time-value of money. 
A)  the future value of that sum of money. 
B)  the present value of that sum of money. 
C)  compound interest. 
D)  the time-value of money.

Question 7

Economic profits are not payments received for

Accepted Answer

A)  taking uninsurable risks in a firm. 
B)  making products or production innovations. 
C)  starting up a business. 
D)  working for someone else. 
A)  taking uninsurable risks in a firm. 
B)  making products or production innovations. 
C)  starting up a business. 
D)  working for someone else.

Question 8

Economic profits are the entrepreneur's reward for taking on the insurable risks of running a business.

Accepted Answer

A) True 
 B)False

Question 9

To say that land rent performs no incentive function means that

Accepted Answer

A)  higher rental payments will not bring forth a larger quantity of land. 
B)  rent is not a cost to specific firms, but it is a cost from the standpoint of the economy as a whole. 
C)  rent does not allocate land in terms of productive efficiency. 
D)  rent tends to allocate land into the most productive uses. 
A)  higher rental payments will not bring forth a larger quantity of land. 
B)  rent is not a cost to specific firms, but it is a cost from the standpoint of the economy as a whole. 
C)  rent does not allocate land in terms of productive efficiency. 
D)  rent tends to allocate land into the most productive uses.

Question 10

Which of the following is correct?

Accepted Answer

A)  Although land has no production cost from society's viewpoint, rental payments are costs to individual producers. 
B)  Land rent is not a cost to either society or individual producers. 
C)  Although land rent is a cost from society's viewpoint, it is not a cost to individual producers. 
D)  Land rent is a cost to both society and individual producers. 
A)  Although land has no production cost from society's viewpoint, rental payments are costs to individual producers. 
B)  Land rent is not a cost to either society or individual producers. 
C)  Although land rent is a cost from society's viewpoint, it is not a cost to individual producers. 
D)  Land rent is a cost to both society and individual producers.

For a given future value and interest rate, the discounted present value will become larger as the time period gets longer.

The demand side, not supply, is the major factor determining how high land's rent will be.

Suppose that in some year nominal interest rates are less than the rate of inflation. This means that

Economic profit might result from

Economic rent refers to the price paid for land and other natural resources that

The amount to which some current amount of money will grow as interest compounds over time is known as

Economic profits are not payments received for

Economic profits are the entrepreneur's reward for taking on the insurable risks of running a business.

To say that land rent performs no incentive function means that

Which of the following is correct?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters

Exam 18: Rent, Interest, and Profit

For a given future value and interest rate, the discounted present value will become larger as the time period gets longer.

The demand side, not supply, is the major factor determining how high land's rent will be.

Suppose that in some year nominal interest rates are less than the rate of inflation. This means that

Economic profit might result from

Economic rent refers to the price paid for land and other natural resources that

The amount to which some current amount of money will grow as interest compounds over time is known as

Economic profits are not payments received for

Economic profits are the entrepreneur's reward for taking on the insurable risks of running a business.

To say that land rent performs no incentive function means that

Which of the following is correct?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters