Lesson 7 Flashcards

1
Q

CHAPTER 7

A

REAADY!!!

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2
Q

The word “____” is often encounteres in our daily lives when there are discussions about loan and earnings.

A

Interest

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3
Q

In economics, interest is used in two ways:

A

Price of the Credit
Return that capital earns

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4
Q

Is often refereed to as loanable funs

A

Price of the Credits

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5
Q

____ it is that capital earns as an input in the production process.

A

Return

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6
Q

_____ are the amounts of money lent out by one individual (lender) to another, called a____.

A

Loanable Funds
Borrower

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7
Q

The _____ would pay an interest interest rate to the lender for the use of that fund.

A

Borrower

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8
Q

___ is defined as a payment for the immediate use of money.

A

Interest

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9
Q

____ affect the level of production of investment goods.

A

Interest Rates

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10
Q

_______ Is determine by the deman for supply of money available as loanable funds.

A

Interest Rate

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11
Q

The word “____” is often encounteres in our daily lives when there are discussions about loan and earnings.

A

Interest

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12
Q

In economics, interest is used in two ways:

A

Price of the Credit
Return that capital earns

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13
Q

Is often refereed to as loanable funs

A

Price of the Credits

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14
Q

____ it is that capital earns as an input in the production process.

A

Return

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15
Q

_____ are the amounts of money lent out by one individual (lender) to another, called a____.

A

Loanable Funds
Borrower

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16
Q

The _____ would pay an interest interest rate to the lender for the use of that fund.

A

Borrower

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17
Q

___ is defined as a payment for the immediate use of money.

A

Interest

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18
Q

____ affects the level of production of investment goods.

A

Interest Rates

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19
Q

_______ Is determine by the deman for supply of money available as loanable funds.

A

Interest Rate

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20
Q

____ comprises the demnad for consumption loans, investment loans, and even the government while the _______ comes from people who save or consume less of their incomes.

A

Demand for loanable funds
Supply of loanable funds

21
Q

A downward sloping demand curve indicates __ interest rates which mean that borrowing money is quite ___.

A

Downward
Cheap

22
Q

When the cost of borrowing is ____, this encourages ____ people to avail of more loans.

A

Low
More

23
Q

It is upward sloping since individuals would get ____ reuturn on their money when interest rates are ___, and willing to save more.

A

Higher Return
high

24
Q

The ______ shows the point whre supply of loanable funds meets the demand for loanable funds.

A

The equilibrium interest rate

25
Q

Is the rate determined by the supply and demans in the market for loanable funds.

A

Nominal Interest rate

26
Q

Considered as the simplest type of interest rate, this is the stated rate of a given loan.

A

Nominal Interest rate

27
Q

Is the nominal interest rate adjusted for inflation

A

Real Interest Rate

28
Q

______ is the pricepaid for the use of land and other natural resources or factors of production that is in fixed supply.

A

Economic Rent

29
Q

____ is a surplus of revenue over cost which arises due to differences in the level of usability of the land.

A

Rent

30
Q

The supply of land is ____, demand becomes the determinat of rent

A

perfectly inelastic

31
Q

2 several determinants that economic rent also relies on productivity:

A

productiveness of the land
prices of other resources

32
Q

If you own some property, you can receive rent being its owner. It is only tou right to benefit on the property in a sturcture that will favor you. However, when economic gains are obtained without any benefits to the society, this is called ____

A

Rent Seeking

33
Q

Is defined as a retun on entrepreneurial abilities to run a business.

A

Profit

34
Q

Profits are divided into 2:


A

Normal Profits
Economic Profits

35
Q

___ is a form of nonwage income

A

Profit

36
Q

Payment made to entrepreneurs as the retun on their risk taking is called _____

A

Normal Profits

37
Q

Supplying entrepreneurship in the market would yield______

A

Normal Profits

38
Q

Supplying entrepreneurship in the market would yield______

A

Normal Profits

39
Q

Is the entrepreneur’s return above and beyond normal profits

A

Economic Profit

40
Q

As entrepreneurs become eafer to receive economic profit, They would like to know _____ since these can provide economic profits.

A

Market Niches

41
Q

CHAPTER SUMMARY

A

READY!

42
Q

Interest is used in two ways: it can be the ______, which often reffered to a sloanable funds, and the ___ that capital earns as an input in the production process.

A

Price of credit
return that capital earns

43
Q

_____are the amount of money lent out by one individual to another, a borrower, for which the latter would pay an interest rate to the lender for the use of said fund.

A

Loanable Funds

44
Q

Interest rate is fetermined by the ____ available as loanable funds.

A

demand for and supply of money

45
Q

______ is the rate determined by supply and demand in the market for loanable funds.


A

Nominal Interest Rate

46
Q

___ is the nominal interest rate adjusted for inflation.


A

Real Interest Rate

47
Q

____ is the price paid for the use of land and other natural resources or factors of production that are in fixed supply.

A

Economic Rent

48
Q

____ is when economic gains are obtained without any reciprocal benefits to the society.

A

Rent Seeking

49
Q

____ is defined as a segment of the market that demans a commodity that is slightly differentiated from other commodities.

A

Market Niche