When you use your own savings to start a business, you make a profit
A. after you earn an amount equal to the savings you used to start the business.
B. only after you cover the opportunity cost of using your savings to start your business.
C. after the first dollar you earn, because you borrowed no funds to start the business.
D. only after you earn double the amount of money you invested.
Answer: B
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Which of the following policies can be adopted by the Fed in order to stimulate an economy in the short run?
a. Increase the market interest rate b. Purchase U.S. government securities c. Increase the discount rate d. Increase the price of consumer goods e. Increase the required reserve ratio
An increase in a consumer's income
a. increases the slope of the consumer's budget constraint. b. has no effect on the slope of the consumer's budget constraint. c. decreases the slope of the consumer's budget constraint. d. has no effect on the consumer's budget constraint.
According to the efficient market hypothesis, rational people will not recognize that asset prices are rising too quickly.
Answer the following statement true (T) or false (F)
Physical capital is distinguished from human capital because
A) physical capital refers to trained people. B) physical capital refers to equipment and machinery, whereas human capital refers to trained people. C) human capital refers only to day laborers. D) physical capital refers to trained people, whereas human capital refers to equipment and machinery.