Chapter 14 Post Quiz
Land and Capital

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Rent	a. Durable goods that are in turn used as productive inputs for further production.
	2. Whatever it can	b. An estimate of the loss in dollar value of a capital good due to obsolescence or wear during a period of time.
	3. A tax on rent	c. An example of a financial asset.
	4. Capital	d. Land will earn
	5. Rate of return on capital	e. An example of a capital good.
	6. Depreciation	f. The net dollar return per year for every dollar of invested capital.
	7. Conveyor belt	g. Land and capital goods like computers, buildings, and automobiles that are used to produce further goods and services.
	8. Tangible assets	h. Will lead to no market distortions nor economic inefficiencies.
	9. Mortgage	i. The dollar value today of a stream of income over time.
	10. Interest rate	j. The annual return on borrowed funds.
	11. Real interest rate	k. Ration society's scarce supply of capital goods and to induce people to sacrifice current consumption in order to increase the stock of capital.
	12. Present value	l. Payment for the use of factors of production.
	13. Functions of the interest rate	m. The nominal interest rate minus the rate of inflation.
	14. Short-run supply of capital	n. Perfectly inelastic.
	15. Free markets	o. Promote efficiency.