Tuesday, April 13, 2010

Rent, Interest & Profit


Students shall be able to

  1. Explain what determines economic rent.

  2. Explain why economic rent is a surplus payment.

  3. Explain the single-tax theory and its criticisms.

  4. Explain what determines rent differentials.

  5. Explain how rent functions as a cost to the individual firm.

  6. Describe how the interest rate is determined.

  7. Explain how business firms make investment decisions.

  8. Distinguish between nominal and real interest rates.

  9. State five factors which may cause interest rates to differ.

  10. Distinguish between economic, normal, and business profits.

  11. Explain why profits are received by some firms and not by others.

  12. List three sources of economic profits.

  13. Describe the general function of profits.

  14. Summarize the current relative shares of national income.



  1. Students shall take notes on chapter 29 in McConnell & Brue.



  1. Take notes on chapter 29 in McConnell & Brue. [Click here for the online PowerPoint.]



Monitor and adjust as necessary.