Question 1 of 20
In general, a plot of land goes to:
A. whomever the government designates.
B. the highest bidder.
C. the person who can make the best use of it.
D. the person who has been using the land over time.
Question 2 of 20
The supply of land is:
A. perfectly elastic.
B. relatively elastic.
C. relatively inelastic.
D. perfectly inelastic.
Question 3 of 20
Who wanted to tax away all rent from landlords?
A. David Ricardo
B. Henry George
C. Joseph Schumpeter
D. Frank Knight
Question 4 of 20
Which is NOT determined by supply and demand?
A. The wage rate
B. The interest rate
C. Rent
D. Profits
Question 5 of 20
"Profits are a reward for risk-bearing" would be a view held by:
A. Joseph Schumpeter.
B. Frank Knight.
C. Henry George.
D. Karl Marx.
Question 6 of 20
__________ sees the entrepreneur as an exploiter of labor.
A. Joseph Schumpeter
B. Frank Knight
C. Henry George
D. Karl Marx
Question 7 of 20
A change in rent will be brought about by a change in:
A. the supply of land.
B. the demand for land.
C. both the supply of and the demand for land.
D. neither the supply of nor the demand for land.
Question 8 of 20
Usury laws lead to:
A. a surplus of loanable funds.
B. a shortage of loanable funds.
C. a floor under interest rates.
D. more lenders than borrowers.
Question 9 of 20
Rent on marginal land is:
A. very high.
B. above 0.
C. 0.
D. negative.
Question 10 of 20
Henry George advocated each of the following EXCEPT that:
A. all land should be free.
B. all rents should be taxed away.
C. the government should raise all its tax revenue from a single tax on land.
D. since land did not really belong to the landlords, rent was an unearned surplus.
Question 11 of 20
Which economist believes that all profits are linked with uncertainty and risk?
A. Frank Knight
B. Joseph Schumpeter
C. Karl Marx
D. John Maynard Keynes
Question 12 of 20
If there were no usury law the interest rate would be:
A. 6%.
B. 12%.
C. 18%.
D. 24%.
Question 13 of 20
Usury is considered the charging of:
A. higher interest rates than people are willing to pay.
B. lower interest rates than people are willing to pay.
C. unconscionably high interest rates.
D. extremely low rates of interest.
Question 14 of 20
Who said this: "The most hated sort, with the greatest reason, is usury, which makes a gain out of money itself, and not from the natural objects of it. For money was intended to be used in exchange, but not to increase at interest…of all modes of getting wealth this is the most unnatural."
A. Aristotle
B. Joseph Schumpeter
C. Benjamin Franklin
D. Frank Knight
Question 15 of 20
Which statement is true?
A. Joseph Schumpeter said, "risk bearing is no part of the entrepreneurial function."
B. Benjamin Franklin said, "It is better to borrow than to lend."
C. Aristotle said, "the fair rate of interest is exactly what the market will bear."
D. David Ricardo said, "the landlord's return, rent, should be taxed away by the government."
Question 16 of 20
Which is the most accurate statement?
A. Fringe and sub-prime lending should be outlawed.
B. Poor people cannot get loans in the United States.
C. Payday lenders like the Military Financial Network make low interest loans to our military personnel.
D. When poor people get personal loans, they usually pay much higher interest rates than the average American.
Question 17 of 20
The theory of rent formulated by __________ is still used by most economists today.
A. Karl Marx
B. David Ricardo
C. Frank Knight
D. Joseph Schumpeter
Question 18 of 20
When the demand for a plot of land falls, its:
A. supply will fall.
B. supply will rise.
C. price will fall.
D. price will rise.
Question 19 of 20
As the demand for land falls, rents:
A. rise and more marginal land comes into use.
B. fall and less marginal land is used.
C. rise and less marginal land is used.
D. fall and more marginal land comes into use.
Question 20 of 20
The concept that a dollar today is worth more than a dollar in the future is called:
A. the net productivity of capital.
B. economic rent.
C. present value.
D. the capitalization of assets.
