QUESTION 1 In the marketplace, does production always takes time? Yes No 4 point

Question

QUESTION 1

In the marketplace, does production always takes time?

Yes

No

4 points   

QUESTION 2

In a general sense, the firm is essential in the same position as the moneylender in that both make a current outlay of money in exchange for a future payoff.

True

False

4 points   

QUESTION 3

The axiom that refers to the deeply-rooted and widely observed fact that people prefer to enjoy any given satisfaction or good in the present rather than the enjoyment of the same good in the future is known as

self-interest

marginality

time-preference

all of the above

none of the above

4 points   

QUESTION 4

A discount reflects the higher subjective value one attaches to present goods that are presently available rather than in the future.

True

False

4 points   

QUESTION 5

Is the pure interest rate the same as the subjective time-preference rate?

Yes

No

4 points   

QUESTION 6

According to the author, is the word “price” misused in many contexts in economics?

Yes

No

4 points   

QUESTION 7

Which of the following are important propositions implied in the numerical structures of Tables III-IV in Chapter 9 of the text?

The greater is the time-preference rate, the greater is the numerical rate or interest, or the lower is the present discounted value.

The longer the time-span involved in the inter-temporal transaction, the greater is the premium rate of interest, or the lower is the present discounted value.

The time-preference or interest rate is always positive, never zero or negative.

All of the above.

None of the above.

4 points   

QUESTION 8

A(n) ____________ time-preference means that a person provides only for present consumption or acquires only present goods, and never saves any current income for future consumption nor acquires any future goods.

pure

neutral

subjective

relative

none of the above

4 points   

QUESTION 9

Real-world rates of time-preference must lie mostly between the one extreme of absolute time preference and the other extreme of absolutely no time-preference.

True

False

4 points   

QUESTION 10

The relevant costs of each firm include which of the following implicit costs?

rent

interest

wages

all of the above

none of the above

4 points   

QUESTION 11

Does the profit margin of a firm reflect an opportunity cost, i.e., the equivalent of what the firm could have earned elsewhere, by investing in financial assets instead of in production?

Yes

No

4 points   

QUESTION 12

Which of the following impacts will affect the overall profit-margin of a firm?

impact of uncertain demand

impact of reduced sales

impact of inflation

all of the above

none of the above

4 points   

QUESTION 13

What is called the present discounted value imputed to a stock of productive assets or factors that is expected to yield its owner a stream of earnings over a given future period?

subjective value

imputed value

material value

absolute value

capital value

4 points   

QUESTION 14

Is the author a strong defender and advocate of the cost-of-production theory of price?

Yes

No

4 points   

QUESTION 15

Does market price ultimately determine the costs of production?

Yes

No

4 points   

QUESTION 16

Which of the following is the true source of profits on the marketplace?

labor

capital

customers

all of the above

none of the above

4 points   

QUESTION 17

The hourly wage-rate is ultimately determined by the

laborer

management of the company

government

market forces

none of the above

4 points   

QUESTION 18

According to the author, should the consumer be “sovereign” in the market?

True

False

4 points   

QUESTION 19

Is the “matching problem” present in modern economies as well as in Crusoe-like self-subsistence economies?

Yes

No

4 points   

QUESTION 20

Seen from an individual firm’s point of view, are consumer dollar ballots the most important determinant of whether the firm reaps profits of losses?

Yes

No

4 points   

QUESTION 21

Do profits and losses exist in socialist as well as in capitalist economies?

Yes

No

4 points   

QUESTION 22

Is the author a strong advocate of artificial monopolies?

Yes

No

4 points   

QUESTION 23

The first hands-off pro-competition policy by government was known from its inception in 18th century ___________ as laissez-faire.

Holland

Britain

France

Russia

America

2 points   

QUESTION 24

Are property rights one of the most important features that differentiate the free market from socialism or any other government-controlled system?

Yes

No

2 points   

QUESTION 25

Which of the following are human rights that ultimately depend on property rights?

freedom of the press

freedom of speech

freedom of religion

all of the above

none of the above

Yes

No

Explanation / Answer

(1) Yes.

Production cannot be timeless or instananeous.

(2) True

A moneylender lends at current period expecting future interest income & a firm makes current investments expecting future revenue (and profit) generation.

(3) (c)

Time preference means that consumers value current consumption more than future consumption.

(4) True

Discounting is a technique to value future values in terms of current value.

(5) No.

Pure (Nominal) interest doesn't consider time value, real interest does.

(6), (7) - question refers to specific text that question doesn't provide.

(8) (a)

This is called pure time preference.

(9) True

In real world, time preference is a mix of extremes.

(10) (e): None

Mentioned costs are explicit costs & not implicit [But in cost calculation, all these explicit costs are considered].

(11) Yes.

In economics, profit is computed after deducting opportunity (implicit) costs.

(12) (d)

All the given factors will affect profit margin.

Note: First 10 answerable questions have been answered.

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