You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic loss if
A. the return on your investment is less than 5%.
B. the return on your investment is exactly 5%.
C. the return on your investment is greater than 5%.
D. indeterminate from given information.
Answer: A
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Optimization in differences analyzes:
A) the total net benefits of the alternative that looks the most attractive. B) the change in the net benefits resulting from a shift from one alternative to another. C) only the costs of an alternative and not the benefits. D) the total net benefits of different alternatives.
If the real interest rate rises, then the
A) quantity of saving decreases and there is a movement down along the supply of loanable funds curve. B) quantity of saving increases and there is a movement up along the supply of loanable funds curve. C) supply of saving increases and the supply of loanable funds curve shifts rightward. D) supply of saving decreases and the supply of loanable funds curve shifts leftward. E) demand for investment decreases and the demand for loanable funds curve shifts leftward.
Which of the following was a major omission from Ulrich B. Phillip's proxy for the rate of return in slavery?
a. The price of cotton b. The price of slaves c. The number of slaves d. The productivity of slaves e. The maintenance cost of slaves
The rule of 72 implies that a country with a growth rate of 2 percent:
A. will double its income in about 7 years. B. will double its income in about 36 years. C. will double its income in about 50 years. D. will never double its income.