Economics Questions 1, 2, 3, 4, and 5What is the correct answers for these five economic questions showed in two screenshots? QUESTION 1If a factor of production has a fixed total supply, then payments to that factor constitute:A. WagesB. Economic rentC. Normal profitsD. Interest paymentsсQUESTION 2Other things equal, the interest rate on a loan will be larger:A. The less the risk involvedB. The larger the bank making the loanC. The longer the length (maturity) of the loanD. If loan interest is exempt from taxationсQUESTION 3Economists would not consider which one of the following to be a productive economic resource?A. LandB. Capital goodsC. MoneyD. Entrepreneurship.CQUESTION 4If the interest rate is 15%, what is the present value of $10,000 received two years from now?A. $7,000.00B. $7,692.30C. $13,000D. $7,561.43 QUESTION 5If the interest rate is 10%, what is the present value of $25,000 received two years from now?A. $20,000B. $20,661C. $30,250D. $30,000

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If a factor of production has a fixed total supply, then payments to that factor constitute: A. Wages B. Economic rent C. Normal profits D. Interest payments

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section9.1: Present Value: Measuring The Time Value Of Money

Problem 1QQ

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Question

Economics Questions 1, 2, 3, 4, and 5

What is the correct answers for these five economic questions showed in two screenshots?

QUESTION 1
If a factor of production has a fixed total supply, then payments to that factor constitute:
A. Wages
B. Economic rent
C. Normal profits
D. Interest payments
с
QUESTION 2
Other things equal, the interest rate on a loan will be larger:
A. The less the risk involved
B. The larger the bank making the loan
C. The longer the length (maturity) of the loan
D. If loan interest is exempt from taxation
с
QUESTION 3
Economists would not consider which one of the following to be a productive economic resource?
A. Land
B. Capital goods
C. Money
D. Entrepreneurship.
C
QUESTION 4
If the interest rate is 15%, what is the present value of $10,000 received two years from now?
A. $7,000.00
B. $7,692.30
C. $13,000
D. $7,561.43

QUESTION 5
If the interest rate is 10%, what is the present value of $25,000 received two years from now?
A. $20,000
B. $20,661
C. $30,250
D. $30,000

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