You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. You will earn an economic profit if the return on your investment is
A. between 0 and 6%.
B. 6%.
C. greater than 6%.
D. only greater than 10%.
Answer: C
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If net exports are equal to net foreign investment, which of the following is not true?
A) The balance on the financial account is zero. B) The current account balance is equal to the negative of the financial account balance. C) Net capital inflows are equal to imports minus exports. D) The balance of payments is zero.
If you invest $500 today, and the value one year from today is $1000, then the annual interest rate must be
A) 10%. B) 50%. C) 100%. D) 200%.
It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Acme has received applications from 10 graduates of State U. Five included transcripts, all of which indicated GPAs of 3.0 or better. Acme will most likely infer that the five graduates who did not include transcripts:
A. did not carefully read the application instructions. B. had GPAs of less than 3.0. C. had GPAs evenly distributed between 2.0 and 4.0. D. had GPAs of more than 3.0.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.