Bethel University - Spire Yearbook (St Paul, MN)

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9o Income payments to land, labor, (a) profits (b) residual payments (q) wages and salaries © contractual payments and capital are considered to bo 10oPart of the personal income called (p implicit rent Co) explicit rent (c) contract rent (d) economic rent of an enterpriser who uses his own land may be lloEconomic rent is best defined as the payment for the use of (a) factory buildings or capital goods land or other natural resources (c) resources whose supply is perfectly elastic (d) resources used in the production of free goods concentration of skyscrapers in New York City reflects mainly the relatively higfr price of land tax policy of the city and state building preference of the people rather low marginal revenue product of capital 13. The (d) proposal for a single tax on rent was developed by Adam Smith Henry George Davie Ricardo Alfred Marshall II4.• The equilibrium rate of interest is .determined by J treasury policy supply and demand of loanable funds liquidity preference bankers and government (c) (d) 15. The interest rate reflects (a) the return on bonds (b) the net marginal productivity of investment (q) • the personal valuations of future income relative to current consumption {2 all throe of the above anwers 16, The demand for loanable funds rises from (a) a productivity of capital (b) public investment demands time preference of persons all three of the above answers a 17 An important motive in holding money is (a) the speculative motive (b) the transactions motive a the precautionary motive all three of the above answers Economic

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jl j.i Econ 152 Final Exam Total points possible: 30 (20 in m.c.; 10 in essay) M.C. Points J Essay pts« Total pts. Final grade c - 1 The largest share of national income consists of (a) corporate income wages and salaries (c) rental and interest income (d) income of unincorporated firms 2. The percentage range of national income into which wages and salaries fall ij; (a) 35-k5% (b) k5-55% (cj 5-652 65-75$ 3 Outstanding early theories about wage determination include (a) the wages fund theory (b) the subsistence theory of wages Lc) the residual claimant theory of wages d all three of the above answers Ij.. flj ing real wages in the U. S. in recent years are mainly due to greater union strength reductions in the labor supply improvement in the marginal productivity of labor '.a decline in the exploitation of labor marginal productivity of workers will be raised if the supply of capital is expanded (b) wages are reduced (c) supply of land is reduced (d) number of workers is raised 6. An implicit cost, often not recognized by owners of small business, is the e ccnomic profit of the firm © wages earned by the owner himself (c) interest on loans from banks or friends (c) advertising and the cost of acquiring goodwill 7. Real wages will fall if prices (a) and wage rates both fall (b) and wage rates both rise of goods and services rise more rapidly thah money wage rates (d) rise less rapidly than money wage rates 8. Probably the most important determinant of wages is Q} productivi ty (b) labor unions (c) labor mobility (d) the business cycle Economics

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Student Teaching: you glimpse the profundity of the situation you so glibbly entered Education