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Teacher resources and professional development across the curriculum
Teacher professional development and classroom resources across the curriculum
To show the economic reasons for payments of interest and normal profits, the causes of “windfall” profits, and how the decision to invest in plant and equipment is related to the interest rate and expected returns on the investment.
Suppose that the current rate of interest is 6%, and a particular asset will yield an annual rate of return of $1,500. The market value of this asset is...
$25,000. 1500 = .06 X. 1500 / .06 = 25,000NEXT QUESTION
Which of the following is usually the MOST IMPORTANT factor in determining the interest rate on a loan?
The degree of risk involved. All other factors may have some bearing as well, but the primary determining factor will usually be degree of risk.NEXT QUESTION
The present value of a dollar will be unaffected over time so long as...
none of the above.NEXT QUESTION
We can conclude from this diagram that the input is...
Land. We know by the vertical supply curve that this is a fixed input which, by the economist's definition, is land.NEXT QUESTION
The price of this input is called...
Rent. The fixed supply curve tells us that this is land, a fixed input, so income derived from this input is rent.NEXT QUESTION
Karl Marx would MOST LIKELY agree with which of the following statements? Profits are...
that part of labor’s productivity that the capitalist retains.RESTART QUIZ