Economics (McConnell), AP* Edition, 20th Edition

LO 16.1

Explain the nature of economic rent and how it is determined.

LO 16.2

Define interest and explain how interest rates vary based on risk, maturity, loan size, and taxability.

LO 16.3

Explain the loanable funds theory of interest rates.

LO 16.4

Demonstrate how interest rates relate to the time-value of money.

LO 16.5

Explain the role of interest rates in allocating capital, modulating R&D spending, and helping to determine the economy's total output of goods and services.

LO 16.6

Relate why economic profits occur, and how profits, along with losses, allocate resources among alternative uses.

LO 16.7

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