You use $40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of
A. -$1,200.
B. $1,200.
C. $2,000.
D. $3,200.
Answer: A
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Filling gaps in your information by generalizing based on observable characteristics is called:
A. statistical discrimination. B. signaling. C. building a reputation. D. proofing.
Demand shows
a. the various quantities people are willing and able to buy at various prices, ceteris paribus. b. the various quantities people are able and willing to buy at various prices. c. the various prices people face when buying. d. how much people buy at one specific price.
At an exchange rate of $1 = €1 in Figure 36.1, there is
A. Equilibrium in the foreign exchange market. B. A shortage of euros. C. a shortage of dollars. D. A surplus of dollars.
Expansionary monetary policy is likely to lead to a depreciation of the nation's currency
Indicate whether the statement is true or false