You decide to lend $100 to a friend interest free for one year. You calculate that you could have earned 10% interest. What is the opportunity cost of the loan if it is paid on time?
A. $100
B. $10
C. $0
D. $110
Answer: B
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Which of the following is NOT considered an example of a capital good?
A) a miner's cap B) a GPS tracking device C) an airport kiosk D) a U.S. government bond E) a stethoscope
If government spending decreases, which of the following would occur?
a. An increase in GDP, an increase in the price level, an increase in money demand, and an increase in the interest rate b. An increase in GDP, a decrease in the price level, an increase in money demand, and a decrease in the interest rate c. A decrease in GDP, a decrease in the price level, a decrease in money demand, and a decrease in the interest rate d. A decrease in GDP, a decrease in the price level, an increase in money demand, and an increase in the interest rate e. An increase in GDP, an increase in the price level, a decrease in money demand, and a decrease in the interest rate.
Marginal revenue product of labor is defined as the additional
a. output a firm would receive after hiring one more unit of resource b. cost of hiring one more unit of resource c. revenue earned by selling one more unit of product d. revenue earned by hiring one more unit of labor e. output received by spending one more dollar on resources
The interest rate charged for loans through the discount window is called the:
A. reserve rate. B. discount rate. C. prime rate. D. interest rate.