Micro Economics

Refer to the diagrams. Assume that only wheat can be grown on the three grades of land shown in Figures a, b, and c. Also assume that identical amounts of labor, capital, and other needed inputs are used in farming each grade of land. On the basis of these three figures we:

can say that the land in Figure c is most productive

Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (2) might represent:

corporate income tax payments

The price paid for the use of land declines as more land is brought into use. As a result the:

demand curve for land is downsloping.

Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (1) might represent:

government provision of highways for business truck transportation

Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (3) might represent:

government salaries paid to school teachers

Refer to the above diagram. If the supply of loanable funds is S1 and the demand for loanable funds is D1, the equilibrium interest rate and quantity of funds borrowed will be:

F/A

economic/pure rent

The price paid for non reproducible goods.

Refer to the table, in which the values for columns (2) through (5) are in acres. If the relevant columns are (1), (2), and (3), land rent will be:

$200 per acre

Suppose that interest payments are $140 per year on a $1,000 loan and $1,188 per year on a $8,485 loan. The interest rates on the two loans are:

14 percent on both loans

The data represent a personal income tax schedule. Answer the question on the basis of this information. Refer to the table. If your taxable income is $8,000, your average tax rate is:

25 percent and the marginal rate on additional income is 40 percent

Which is correct: - Economic rent is the minimum return which entrepreneurs must receive to continue in a particular line of production. - Economic rent is a price paid for land resources whose supply is perfectly inelastic. - Economic profits would be nonexistent in a dynamic, purely competitive economy. - Economic profits can properly be regarded as the salaries received by the hired managers of corporations.

Economic rent is a price paid for land resources whose supply is perfectly inelastic.

The rent paid for the pasture land used to graze cattle would increase if:

any of the above occurred

As a proportion of domestic output, taxes in the United States:

are lower than in most other industrially advanced countries.

The total amount of U.S. tax revenue needed to finance the public sector:

is larger today, as a percentage of total output, than in 1960.

The largest source of tax revenue for the U.S. Federal government is:

personal income taxes

The three most important sources of Federal tax revenue in order of descending importance are:

personal income, payroll, and corporate income taxes

Which of the following is not an important source of revenue for the Federal government?

property taxes

A progressive tax is such that:

tax rates are higher the greater one's income.

The demand for farmland will increase if:

technological advances make land more productive

Refer to the diagram. Land:

would be a free resource if demand is D4 or less.