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Home / Questions / Which of the following statments about interest income derived from loanable funds is

Which of the following statments about interest income derived from loanable funds is

   Which of the following statments about interest income derived from loanable funds is

false?  It

a.is considered to be the profit due to an entrepreneur

b.originates in theft of property, according to Marxists

c.is the reward for an earlier decision to postpone consumption

d.is justified because savers have property rights to their savings and are entitled to the
rewards they generate

e.is paid in the loanable funds market

122.              The present value of a property is the

a.loanable funds used to purchase the property

b.profit earned by landlords

c.value today of the stream of returns a property will generate in the future

d.interest rate divided by the annual return of a property

e.rent derived from owning the property

123.              Suppose you inherit an orange grove and it generates an annual return of $16,000. You
                            want to sell it. The interest rate is 8 percent. What should you expect to receive for it?

a.$1,280

b.$2,400

c.200,000

d.192,000

e.not enough information is given

124.              Suppose you inherit an orange grove and it generates an annual return of $16,000. You
                            want to sell it. The interest rate is 8 percent. If the government imposed an interest rate
                            ceiling at 10 percent, the ceiling would cause the price of your grove to

a.go down

b.go up

c.stay the same

d.be irrelevant because you would be unable to sell the grove at any price when the
price ceiling is higher than the interest rate

e.not enough information given

125.              Economists define the rent of a resource as the

a.value of the resource

b.difference between what the resource is paid on the market and the cost of bringing
that resource into production

c.present value of the resource

d.land-profit generated by the resource

e.opportunity cost of using the resource in production

126.              Which of the following is true about land rent?

a.It is the difference between the payment for using land in production and the cost of
such use.

b.When the supply curve of land is horizontal, the position of the demand determines
rent.

c.It is a cost to landowners who rent the use of land.

d.When the supply curve of land is vertical, the supply curve determines rent.

e.When the supply curve of land is downward sloping, both the demand and supply
curves determine rent.

127.              When differences in land quality and access to marketplaces are very large and
                            population grows rapidly, the conditions are ripe for

a.increasing differential and location rents

b.decreasing differential and location rents

c.decreasing differential rents and increasing location rents

d.increasing differential rents and decreasing location rents

e.marginal physical product of land to increase

128.              Land rent results from

a.differences in the productivity of land

b.equality in the marginal physical product of different acres of land

c.landlords demanding a rent higher than the price of land use

d.differences in land distance from the marketplace

e.the difference between differential and location rents

129.              If all land had equal productivity, then

a.land rent would increase

b.differential land rents would not exist

c.location rent would not exist

d.locations rent would be everywhere the same

e.differential rent would increase

130.              In the Added Perspective “The Corn Laws Controversy in 19th-Century England,”  the
                            implication of David Ricardo’s theory of differential rent is that

a.high rents were the main cause of high food prices in 19th-century England

b.price is rent determining; rent is not price determining

c.international trade ought to be restricted since it is instrumental in protecting
landowners’ rents

d.land rents are part of the cost of food production

e.differential land rents do not exist

 

 

Dec 11 2019 View more View Less

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