Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is
A. $10,700, the amount invested plus the interest charge on the investment.
B. $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
C. $10,000, as that is the amount invested in the restaurant.
D. $0, as you used your own money.
Answer: B
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If managers do not choose to maximize profit, but pursue some other goal such as revenue maximization or growth,
A) they are more likely to become takeover targets of profit-maximizing firms. B) they are less likely to be replaced by stockholders. C) they are less likely to be replaced by the board of directors. D) they are more likely to have higher profit than if they had pursued that policy explicitly. E) their companies are more likely to survive in the long run.
If virtual currencies grow significantly in popularity, a potential threat is the ability of end users to:
a. Avoid paying taxes. b. Engage in illegal activities without detection. c. Increase demand without changes in a nation's "official' money supply figures. d. All of the above are true.
The productivity of any input is independent and is not affected by the other resources that are used.
Answer the following statement true (T) or false (F)
Refer to Table 3-1. The table above shows the demand schedules for loose-leaf tea of two individuals (Sunil and Mia) and the rest of the market. If the price of loose-leaf tea rises from $3 to $4, the market quantity demanded would
A) decrease by 32 lbs. B) increase by 64 lbs. C) decrease by 64 lbs. D) increase by 32 lbs.