Ch.29 Quiz

Instructions
Please read the questions carefully.

This assessment is worth 100 points.

  1. Economic or pure rent is:   (4 points)

    a.  
    b.  
    c.  
    d.  

  2. To say that land rent performs no incentive function means that:   (4 points)

    a.  
    b.  
    c.  
    d.  

  3. Which of the following statements is correct?   (4 points)

    a.  
    b.  
    c.  
    d.  



  4. Refer to the above diagram. Land:   (4 points)

    a.  
    b.  
    c.  
    d.  

  5. Landowners will not receive any rent so long as:   (4 points)

    a.  
    b.  
    c.  
    d.  

  6. The demand for farmland will increase if:   (4 points)

    a.  
    b.  
    c.  
    d.  

  7. The total supply of land is:   (4 points)

    a.  
    b.  
    c.  
    d.  



  8. Refer to the above diagrams. Assume that only wheat can be grown on the three grades of land shown in Figures a, b, and c. Also assume that identical amounts of labor, capital, and other needed inputs are used in farming each grade of land. On the basis of these three figures we can say that:   (4 points)

    a.  
    b.  
    c.  
    d.  

  9. The demand for loanable funds is downsloping:   (4 points)

    a.  
    b.  
    c.  
    d.  

  10. Other things equal, an increase in the productivity of capital goods will:   (4 points)

    a.  
    b.  
    c.  
    d.  




  11. The supply of loanable funds curve S1 slopes upward because:   (4 points)

    a.  
    b.  
    c.  
    d.  




  12. If the supply of loanable funds is S0 and the demand for loanable funds is D0, the equilibrium interest rate and quantity of funds borrowed will be:   (4 points)

    a.  
    b.  
    c.  
    d.  

  13. Which of the following generalizations is false? Other things equal:   (4 points)

    a.  
    b.  
    c.  
    d.  

  14. The pure rate of interest is approximated by the:   (4 points)

    a.  
    b.  
    c.  
    d.  

  15. The pure rate of interest refers to the:   (4 points)

    a.  
    b.  
    c.  
    d.  

  16. A lower equilibrium interest rate:   (4 points)

    a.  
    b.  
    c.  
    d.  

  17. The equilibrium interest rate:   (4 points)

    a.  
    b.  
    c.  
    d.  

  18. Changes in the equilibrium interest rate will:   (4 points)

    a.  
    b.  
    c.  
    d.  

  19. The real rate of interest is:   (4 points)

    a.  
    b.  
    c.  
    d.  

  20. A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws:   (4 points)

    a.  
    b.  
    c.  
    d.  

  21. Economic profit might result from:   (4 points)

    a.  
    b.  
    c.  
    d.  

  22. If labor's share of the national income is broadly defined as the sum of wages and salaries and proprietors' income, we can say that labor's relative share has:   (4 points)

    a.  
    b.  
    c.  
    d.  

  23. Interest, rent, and corporate profits combined account for about what percentage of the national income?   (4 points)

    a.  
    b.  
    c.  
    d.  

  24. (Last Word) Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made. The interest rate on this loan is about:   (4 points)

    a.  
    b.  
    c.  
    d.  

  25. The interest rate is the price paid for the use of money.   (4 points)

    a.  
    b.  



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