When you use your own savings to start a business, you make a profit
A. after the first dollar you earn, because you borrowed no funds to start the business.
B. only after you cover the opportunity cost of using your savings to start your business.
C. after you earn an amount equal to the savings you used to start the business.
D. only after you earn double the amount of money you invested.
Answer: B
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In a(n) __________ insurance policy, the savings component is allocated among a menu of investment options
A) whole B) term C) universal D) variable
The issuer of a bond promises to make ________ payments at specified times and repay the ________ at some point in the future and the bond's price in the market ________ fluctuate over the life of the bond.
A) interest; principal; can B) principal; interest; cannot C) interest; principal; cannot D) principal; interest; can
Consider the accompanying figure representing the labor market below.
If a minimum wage of $12 per hour is imposed in this labor market then worker surplus will ________ and employer surplus will ________.
A. stay the same; fall B. fall; fall C. rise; fall D. rise; stay the same
If a subsidy (going to producers) is created for a good, this would
A. move its supply curve to the right. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. cause a movement along the supply curve to a (higher price, higher quantity) point. D. move its supply curve to the left.