\"Please answer with simple explainations\" \"Please answer with simple explaina
ID: 1098246 • Letter: #
Question
"Please answer with simple explainations""Please answer with simple explainations""Please answer with simple explainations""Please answer with simple explainations""Please answer with simple explainations""Please answer with simple explainations"
30. Which would be considered to be an economic resource?
a) rent b) money c) interest d) capital
31. If the price paid for the use of a fixed amount of money falls,:
a) economic rent has fallen.
b) economic rent has risen.
c) the interest rate has risen.
d) the interest rate has fallen.
Use the following to answer question 32:
The schedule shows interest rates, the associated quantity demanded of loanable fund, and the quantity supplied of loanable funds in billions of dollars at those inter rates.
32. Refer to the above table and information, If technology improved and the demand for loanable funds increases by $140 billion at each interest rate, the new equilibrium interest rate will be :
a) 2 percent. b) 4 percent. c) 8 percent. d) 10 percent.
33. If the inflation rate is 10 percent, what is a bank's real of return on a loan of $100 at 10 percent interest?
a) $100 b) $10 c) 10 percent d) 0 percent
34. One effect of a usury law is that it will:
A) benefit lenders. B) penalize borrowers. C) increase the efficiency of investment.
D) subsidize borrowers with high incomes.
35. Economic profits are not payments received for:
A) taking uninsurable risks. B) making product or production innovations.
C) exercising monopoly power. D) ownership of large stocks of capital resources.
Explanation / Answer
30.) D - Capital - As the four types of economic resources capital, labor, land, and technology.
31.) D - The interest rate has fallen - As the definition of paying for use of money is interest.
32.) C - 8% - As it would make both the quantity supplied and quantity demanded at 440 Billion.
33.) D - 0% - As all gains from the interest on the loan are lost due to the infation rate being the same.
34.) D - Subsidize borrowers with high income - As creating a price ceiling for interest rate will always benefit the borrowers.
35.) D - Ownership of large stocks of capital resource - As economic profits only come from using a combination of capital and labor, not simply owning it.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.