Question 1) Describe what determines economic rent.
Question 2) Describe why economic rent is a surplus payment.
Question 3) Describe the single-tax theory and its criticisms.
Question 4) Describe what determines rent differentials.
Question 5) Describe how rent functions as a cost to the individual firm.
Question 6) Explain how the interest rate is determined.
Question 7) Describe how business firms make investment decisions.
Question 8) Differentiate between nominal and real interest rates.
Question 9) Write down five factors that may cause interest rates to differ.
Question 10) Differentiate between economic, normal, and accounting profits.
Question 11) Describe why profits are received by some firms and not by others.
Question 12) Write down three sources of economic profits.
Question 13) Explain the general function of profits.
Question 14) Explain the present relative shares of national income.