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 a person chooses self-sufficiency, then she can only consume what she produces
a. True b. False Indicate whether the statement is true or false
Keynes believed that:
A. market forces pushing the economy to potential income were weak. B. the government could not aid market forces to push the economy to its potential income. C. market forces pushing the economy to potential income were strong. D. market forces pushing the economy into cumulative spirals were weak.
If U.S. imports of goods and services exceed exports
A. GDP in the United States will be less than the sum of consumption, investment, and government purchases. B. GDP in the United States will exceed the sum of consumption, investment and government purchases. C. net exports for the United States are positive. D. None of the choices are true.
An increase in the price of oil will
A) shift the supply curve of oil to the left. B) shift the supply curve of oil to the right. C) leave the supply curve of oil unchanged. D) Not enough information to answer the question.