You can borrow $5000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income is
A) 25%.
B) 12.5%.
C) 10%.
D) 5%.
D
You might also like to view...
Sammy has a drone that he values at $1,500. Frank values the same drone at $1,000. The government offers a subsidy of $800 to the buyers of drones, and Sammy and Frank agree on a price of $1,600. The cooperative surplus for Sammy and Dean will be
A) $200. B) $300. C) $600. D) $800.
A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good. B) the demand for the good is relatively elastic. C) the good has many consumer substitutes. D) production of the good uses commonly available resources.
Which of the following is a possible advantage of a free market condition? a. In a free market, consumers are offered discounts on the purchase of products
b. In a free market, all goods and services are offered for free to households below the poverty line. c. In a free market, continuous government intervention helps keep the price of products under control. d. In a free market, competition among sellers helps the consumers purchase a product at the lowest possible price. e. In a free market, consumers have limited products to choose from, thereby assuring less confusion and better quality.
If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely elevate the wage rate of position A relative to position B?
a. Position A offers steady employment, whereas employees holding position B are often laid off. b. Position A offers more sick leave and more paid holidays. c. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned. d. Position A is a safe office job; position B requires the employee to operate a dangerous saw.