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Rent, Interest, and Profit


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IN THIS CHAPTER YOU WILL LEARN:

  1. The nature of economic rent and how it is determined.


  2. About the loanable funds theory of interest rates.


  3. How interest rates relate to the time-value of money and vary based on risk, maturity, loan size, and taxability.


  4. Why economic profits occur, and how profits, along with losses, allocate resources among alternative uses.


  5. The share of U.S. earnings received by each of the factors of production.










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