PART I: SHORT RESPONSE
Directions: Please provide detailed and elaborate responses to the following questions. Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.
1. Would you consider becoming a payday lender? List the reason why you would and why you would not.
2. As a ?nancial of?cer of a large corporation, you ?nd that the company has been underpaying the Internal Revenue Service by tens of millions of dollars a year. As a whistle blower, you will probably receive a payment of $10 million within a few years. If a large investor offers to pay you a substantial amount of money today in exchange for your future award from the IRS, what would be the minimum amount for which you would settle? Explain how you arrived at that ?gure.
3. Are prices high because rents are high, or are rents high because prices are high? Use an example to illustrate your answer.
4. What are usury laws? Why do economists hate them?
5. Explain why a dollar today is worth more than a dollar you will have in the future.
6. Why is the supply of loanable funds upward sloping? Why is the demand for loanable funds downward sloping?
7. Outline the main theories of pro?ts. Which one(s) do you subscribe to?
PART II: JOURNAL ACTIVITY
Web Field Trip
Directions: Please visit the following website:
• CNN Money
Then answer the question below. Please provide detailed and elaborate responses and ensure that your responses are a minimum of 100 words each and include examples from the reading assignments or personal experience, if possible.
1. Which were the ?ve most pro?table corporations in 2011, and how much pro?t did each of them earn?
Directions: Please provide detailed and elaborate descriptions for each of the following terms and concepts. Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.
1. Land
2. Economic rent
3. Law of Supply
4. Law of demand
5. Capital
6. Interest
7. Interest rates
8. Price ceiling
9. Price floor
10. Innovation
11. Surplus value
12. Profit.