How does Henry George’s proposal for a single tax on land relate to the elasticity of the supply of land? Why are there so few remaining advocates of George’s proposal?
4. If money is not an economic resource, why is interest paid and received for its use? What considerations account for the fact that interest rates differ greatly on various types of loans? Use those considerations to explain the relative sizes of the interest rates on the following:
a. A 10-year $1,000 government bond.
b. A $20 pawnshop loan.
c. A 30-year mortgage loan on a $175,000 house.
d. A 24-month $12,000 commercial bank loan to finance the purchase of an automobile.
e. A 60-day $100 loan from a personal finance company.
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