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Microeconomics Chapters 29 & 30
Terms in this set (78)
How _____ is used depends on its location, its fertility, and whether is posses any valuable minerals.
is the excess payment to a resource above what is necessary to pay to secure it use.
is the payment usually of an amount fixed by contract made by a tenant at specified intervals in return for the right to occupy or use the land of another.
is all means of production created by people.
The formula for ____ is (1/1 rate of interest) to powers of number of periods.
present value of a dollar
is the act or practice of lending money at an exorbitant or illegal rate of interest.
The only means available to increase capital stock is through
If the interest rate rises, the present value of future dollars will
If the interest rate falls, the present value of future dollars will
Usury Laws are a form of price
The demand for land is derived from
the demand for the final product.
The rent on marginal land is
In general, the riskier the investment the
higher the profit.
The basic way that a piece of land differs from another
In economic terms, we pay rent only on
the land itself.
Usury Laws leads to a
shortage of loanable funds.
The four somewhat overlapping theories of how the entrepreneur is able to earn a profit are:
a reward for innovations, a reward for the risk taking, monopoly, profit and exploitation of labor.
During bibliological times charging interest was
The supply of land is perfectly
The most important factor affecting rent is
The supply of land
Land is most efficiently used in
The rent on a particular piece of land is based on
the MRP schedule of the highest bidder.
When the demand for a plot of land rises,
its price will rise.
The supply of land is
Rent on marginal land is
Rents are high because prices are
As interest rates rise
less borrowing will be undertaken.
In the Middle Ages the taking of interest was forbidden to
Jews, Christens, and Muslims
If there were no inflation, a dollar today would be worth
more than a dollar received in the future.
believes all profits are linked with uncertainty and risk.
said, "innovations do not remain isolated events, and are not evenly distributed in time, but on the contrary they tend to cluster, to come about in bunches, simply because some, and then most, firms follow in the wake of successful innovation."
The horizontal dotted line is
a price ceiling.
If there were no usury law, the intent rate would be
With the usury law in effect there is a ___ of ____ billion.
The present value of a dollar declines as
the interest rate rises and the number of years you wait for your money rises.
Both the owners of land and labor can earn an economic rent.
At different times in history Jews, Christians, and Muslims were forbidden to charge interest.
For a usury law to be effective, it must set the interest rate ceiling
below the equilibrium.
Virtually all payday lenders
If you took out a payday loan, you could expect to pay an annual interest rate of
over 1000 percent.
The practice of usury
is legal in some states and illegal in others.
These lenders avoid using the term "interest," but their borrows still do pay a change for borrowing money. This would be considered ___ lending.
A dollar today is worth
more than a dollar in the future.
In 2008 more of the Fortune 500 earned a profit
than lost money.
The amount of rent paid for a piece of land is based on the
supply and demand.
In economic terms, we pay rent only on
the land itself.
Plots of land are differentiated mainly with respect to
The amount of land in the world is virtually
In a demand and supply graph for land, supply is represent ed by a(n)
vertical or perfectly inelastic line.
The main thing Henry George advocated was a
single tax on rent.
An important attribute of rent overlooked by Henry George was its role as a ______ directing the most productive enterprises to the ______.
guidance mechanism, most desirable expensive land.
Rent is high because
demand is high or price of final product.
We can add to our stock of ___ by means of a flow of ____.
The interest rate is determined by the law of
supply and demand.
If the interest rate were 7 percent, $100 today would be worth ___ in dollars you will have one year from now.
If the interest rates fall, the present value of future dollars will
Economists treat profits as a ____ left to the entrepreneur after ___ ___ and _____ have been paid.
residual, rent, interest, and wages.
If income were equally distributed, a nation's Lovenz Curve would be identical to the
line of perfect equality.
The ___ program of President Lyndon Johnson was designed to lift people out of poverty.
Great Society (war on poverty)
The largest gov't program aimed exclusively at helping the poor is
the Earned Income Tax Credit.
The typical welfare family consists of a ___ and ___.
Mother and oe or two children.
All the people employed at a just above the minimum wage; could be considered the
If income were distributed equally our economic
efficiency and incentives would suffer.
Women working full time now earn ___% of what men earn.
About one out of every __ whites is poor.
One child in __ lives in poverty.
The basic liberal solution to welfare dependency is
The basic conservative solution to welfare dependency is
forcing people off welfare.
During the period between 1960 and 1968 the poverty rate
Most social scientists define the poor as being the lowest ___ percent of our income recipients.
There are at least a dozen theories of poverty, and each has
at least some apparent validity.
The Darity - Myers thesis is an attempt to explain
An equal distribution of income would
hurt both the work incentive and the incentive to save.
Doctors earn more than people in other professions basically because
they are in short supply relative to the demand for their services.
To keep a family of four at the poverty line a person working a 40 hour week would earn about
$11 an hour.
Compared to their levels in 2003, the poverty line has ___ the minimum hourly wage has ___.
gone up, gone up
Earning large salaries
is not a major source of great wealth.
What is the reservoirs of Vibrio?
What are the treatments for staph infection?
How will an increase in the number of suppliers affect price and quantity demanded, assuming no change in demand?
how should a producer price an unitary product
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"In the late 1960 s, after 20 years in which the gross domestic product had grown 4% a year, inflation had remained below 2$%, and the Dow Jones Industrial Average had increased fivefold, the U.S. economy began a long slide into an economic abyss. Inflation and interest rates shot up, stock prices stagnated, and by the late 1970s, few thought the U.S. economy could ever recover. Today, many believe this same fate is once again awaiting the U.S. economy. According to the pessimists, the U.S. stock market is in a bubble that is about to burst, and inflation is about to explode. The recent dip in the stock market-prompted by more gloomy warnings from Alan Greenspan-appeared to give credence to these worrywarts. But they are wrong." Brian S. Wesbury, chief economist at Griffin, Kubik, Stephen & Thompson, "Have No Fear, Inflation Isn't Here" [Commentary], The Wall Street Journal Interactive. Edition, October 21, 199 Who is the author of the excerpt?