Chapter 29

Question 1

In general, a plot of land goes to

Answer 1

B. The highest bidder

Question 2

The supply of land is

Answer 2

D. perfectly inelastic

Question 3

Who wanted to tax away all rent from landlords?

Answer 3

B. Henty George

Question 4

Economists say that a dollar today is worth

Answer 4

A. more than a dollar in the future

Question 5

Which is not a determined by supply and demand?

Answer 5

D. Profits

Question 6

“Profits are dewar for risk-bearing” would be a view held by

Answer 6

B. Frank Knight

Question 7

_______ seees the enterpreneur as an exploiter of labor.

Answer 7

D. Karl Marx

Question 8

A change in rent will be brought about by a change in

Answer 8

B. the demand for land

Question 9

Henry George advocated each of the following except that

Answer 9

A. all land should be free

Question 10

The main factor in determining how much one plot of land is worth relative to another alot is

Answer 10

C. its location

Question 11

In economics we say the amount of land is

Answer 11

A. fixed

Question 12

Which of the following is NOT a source of profit?

Answer 12

B. Wages

Question 13

The present value of $1000 recieved 2 years from now given the current rate of interested

Answer 13

A. is less than the present value of $1000 received 1 year from now

Question 14

The supply of land at a location is

Answer 14

C. perfectly inelastic

Question 15

Changes in land rents in the United STates are chiefly the results of

Answer 15

A. change in the demand for land

Question 16

Which statement is true?
A. rent and wages, but not interest, are deteremined by the supply and demand
B. Wages and interest, but not rent, are determined by the supply and demand
C. Ren and interest, but not wages, are determined by supply and demand.
D. Rent, interest, and wages are determined by supply and demand
E. None of the statements are true.

Answer 16

D. Rent, interest, and wages are determined by supply and demand

Question 17

If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profits it earned?

Answer 17

D. All of the choices are true

Question 18

The horizontal dotted line is

Answer 18

A. the price ceiling

Question 19

Whic statment is true about usury laws?

Answer 19

B. Usury laws prevent banks from charging higher refit card interest rates that the price mechanism would allow.

Question 20

Usuray is considered the charging of

Answer 20

C. unconscionably high interest rates

Question 21

Which statement is true?
A. Usury laws hurt some borrowers, but don’t interfere with the price mechanism
B. Usury laws hurt some borrowers and interfere with the price mechanism
C. Usury laws interfere with the price mechanism, but don’t hurt borrowers
D. Usury laws neither interfere with the price mechanism, nor hurt borrowers.

Answer 21

B. Usury laws hurt some borrowers and interfere with the price mechanism

Question 22

If there were no usury laws the interest rate would be ______%.

Answer 22

D. 28

Question 23

Usury laws are popular with ______.

Answer 23

B. the public, but not the economists

Question 24

Which of these does not interfere with the price mechanism?

Answer 24

D. The law of supply and demand

Question 25

Which is the most accurate statement?

Answer 25

D. When poor people get personal loans, they usually pay much higher interest rates than the average American.