Chapter 29 Flashcards Preview

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Flashcards in Chapter 29 Deck (25):
1

In general, a plot of land goes to

B. The highest bidder

2

The supply of land is

D. perfectly inelastic

3

Who wanted to tax away all rent from landlords?

B. Henty George

4

Economists say that a dollar today is worth

A. more than a dollar in the future

5

Which is not a determined by supply and demand?

D. Profits

6

"Profits are dewar for risk-bearing" would be a view held by

B. Frank Knight

7

_______ seees the enterpreneur as an exploiter of labor.

D. Karl Marx

8

A change in rent will be brought about by a change in

B. the demand for land

9

Henry George advocated each of the following except that

A. all land should be free

10

The main factor in determining how much one plot of land is worth relative to another alot is

C. its location

11

In economics we say the amount of land is

A. fixed

12

Which of the following is NOT a source of profit?

B. Wages

13

The present value of $1000 recieved 2 years from now given the current rate of interested

A. is less than the present value of $1000 received 1 year from now

14

The supply of land at a location is

C. perfectly inelastic

15

Changes in land rents in the United STates are chiefly the results of

A. change in the demand for land

16

Which statement is true?
A. rent and wages, but not interest, are deteremined by the supply and demand
B. Wages and interest, but not rent, are determined by the supply and demand
C. Ren and interest, but not wages, are determined by supply and demand.
D. Rent, interest, and wages are determined by supply and demand
E. None of the statements are true.

D. Rent, interest, and wages are determined by supply and demand

17

If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profits it earned?

D. All of the choices are true

18

The horizontal dotted line is

A. the price ceiling

19

Whic statment is true about usury laws?

B. Usury laws prevent banks from charging higher refit card interest rates that the price mechanism would allow.

20

Usuray is considered the charging of

C. unconscionably high interest rates

21

Which statement is true?
A. Usury laws hurt some borrowers, but don't interfere with the price mechanism
B. Usury laws hurt some borrowers and interfere with the price mechanism
C. Usury laws interfere with the price mechanism, but don't hurt borrowers
D. Usury laws neither interfere with the price mechanism, nor hurt borrowers.

B. Usury laws hurt some borrowers and interfere with the price mechanism

22

If there were no usury laws the interest rate would be ______%.

D. 28

23

Usury laws are popular with ______.

B. the public, but not the economists

24

Which of these does not interfere with the price mechanism?

D. The law of supply and demand

25

Which is the most accurate statement?

D. When poor people get personal loans, they usually pay much higher interest rates than the average American.