If you place $10,000 in a savings account that pays 3 percent interest per year and you leave all the money, principal plus interest earned, in the account for three years, approximately how much money will you have at the end of the three years?
52.As interest rates decrease, present values __________, and firms will buy __________ capital goods.
53.As interest rates increase, present values __________, and firms will buy __________ capital goods.
54.Approximately how much money would you need to place in a savings account today to accumulate $5,000 five years from now if the savings account pays an interest rate of 6.5 percent per year?
55."Economic rent" is
a.what an individual pays for the use of land or buildings.
b.a payment in excess of the producer's explicit costs of production.
c.a payment in excess of opportunity costs.
d.a payment for capital goods.
e.none of the above
56."Pure economic rent" is a payment
a.in excess of opportunity costs.
b.in excess of opportunity costs when opportunity costs are zero.
c.for the use of land.
d.in excess of opportunity costs when opportunity costs are positive.
e.to a pure monopolist for the monopolist's product.
57.Pure economic rent can exist only when the factor under consideration
a.is something other than land.
b.has a supply curve that is perfectly elastic.
c.has a demand curve that is perfectly elastic.
d.has a supply curve that is perfectly inelastic.
e.a and d
58.The English economist David Ricardo argued that
a.grain prices were high because land rents were high.
b.land rents were high because grain prices were high.
c.grain prices were high because land rents were low.
d.land rents were high because grain prices were low.
e.none of the above
59.Which of the following statements is true?
a.The supply curve for land is upward sloping in the short run, but is perfectly inelastic in the long run.
b.The supply curve for land is upward sloping in the short run, but is perfectly elastic in the long run.
c.The supply curve for land is upward sloping when considering a small portion of the total amount of land, but is perfectly inelastic when considering the total amount.
d.The supply curve for land is upward sloping when considering the total amount of land, but is perfectly inelastic when considering a small portion of the total amount.
60.Michelle can work at job A earning $50,000 a year, job B earning $83,000 a year, or job C earning $85,000 a year. If Michelle chooses job C, then her economic rent for working at job C rather than job B is
61.Michelle can work at job A earning $50,000 a year, job B earning $83,000 a year, or job C earning $85,000 a year. If Michelle chooses job C, then her economic rent from working at that job rather than job A is
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