Suppose you borrow $500 and agree to pay this $500 plus $75 of interest at the end of a year. The interest rate is:
A. 10 percent.
B. 15 percent.
C. 12.5 percent.
D. 7.5 percent.
Answer: B
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Which of the following are considered factors of production? I. Land II. Labor III. Physical capital IV. Entrepreneurship
A) I and II only B) I and III only C) I, II and III only D) I, II, III and IV
Answer the following statements true (T) or false (F)
1) To determine the optimal quantity to hold in inventory, a profit-maximizing manager uses marginal analysis. 2) As the quantity held in inventory increases, the probability of selling an additional unit increases 3) The expected marginal benefit falls as the quantity held in inventory increases. 4) As the quantity held in inventory increases, the probability of selling less than that quantity increases. 5) The expected marginal cost decreases as the quantity held in inventory increases.
Stagflation is a period of time when the economy is experiencing:
a. inflation and low unemployment. b. high unemployment and low levels of inflation at the same time. c. high inflation and high unemployment at the same time. d. low inflation and low unemployment at the same time.
Which of the following is most likely to be a variable cost for a firm?
A) The interest payments made on loans B) The franchiser's fee that a restaurant must pay to the national restaurant chain C) The monthly rent on office space that it leased for a year D) The payroll taxes that are paid on employee wages