You are asked to lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,000. The interest rate on this loan is

A. 4.50%
B. 5.00%.
C. 5.50%.
D. indeterminate from this information.


Answer: B

Economics

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Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute and the largest fixed fee that it can, what is Always There's profit per customer?

A. $153.13 B. $150.00 C. $187.50 D. $37.50

Economics

In monopolistically competitive market structure, because each good sold in the market is ____, each firm is considered a ____

a. slightly different; price maker b. slightly different; price taker c. the same; price maker d. the same; price taker

Economics

Which of the following would shift a supply curve to the right?

a. an increase in the number of sellers b. expectations of higher future prices c. an increase in input prices d. outdated technology

Economics

Automatic stablizers

A. are not effective in influencing real GDP at any time. B. are only effective in influencing real GDP during normal times. C. are only effective in influencing real GDP at times of a recession. D. can influence real GDP at normal times and times of a recession.

Economics