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1. Digital Study Guide, written by William Walstad
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After reading this chapter, you should be able to:

1. Explain the nature of economic rent and how it is determined.
2. Describe the loanable funds theory of interest rates.
3. Demonstrate how interest rates relate to the time-value of money and vary based on risk, maturity, loan size, and taxability.
4. Relate why economic profits occur, and how profits, along with losses, allocate resources among alternative uses.
5. List the share of U.S. earnings received by each of the factors of production.