What is economic rent?

What is corporation?

What is a share of stock?

What is a bond?

What is the relationship between real interest rates, anticipated inflation, and the nominal rate of interest?

Economic rent serves to an allocative function by guiding available supplies to the most efficient use.

Firms want to maximize profits

Most companies are sole proprietorships

corporation

What is present value?

What is future value?

What is reinvestment?

What is the opportunity cost of capital?

What are disadvantages of partnerships and sole proprietorships?

What is accounting vs. economic profit?

David Ricardo first studied economic rent

stockholders are own

Economic rent: for the use of any resource above its opportunity cost. (also caled economic profit)

What is unlimited liability vs. limited liability?

What are implicit cost?

What are explicit costs?

What is present value?

What is future value?

What is the function of interest rates?-to allocate capital to its most efficient uses.