You borrow $40,000 at an interest rate of 5% to open Organic Foods, an all-natural food store. You will earn an economic profit if the return on your investment is
A. 5%.
B. greater than 5%.
C. 10% or greater.
D. between 0 and 5%.
Answer: B
You might also like to view...
If a firm produces five chairs with marginal costs of $25, $30, $40, $55, and $75, respectively, and sells them for $80 each, what is the firm's total producer surplus?
A) $400 B) $225 C) $175 D) $150 E) $80
Advocates of a progressive income tax use arguments EXCEPT for which of the following?
A) A progressive tax system taxes according to ability to pay. B) A progressive tax system taxes according to benefits received. C) A progressive tax system helps redistribute income away from the rich and towards the poor. D) A progressive tax system maximizes government revenues.
The price of a good will tend to fall if
a. there is an excess demand of the good b. demand and supply of the good are the same c. there is an excess supply of the good d. the price is below the equilibrium price e. the price is near the equilibrium price
Which of the following individuals received a Nobel Prize in economics for his work in behavioral economics?
A. Daniel Kahneman. B. Richard Thaler. C. John Wannamaker. D. Richard Easterlin.