The amount of interest owed on a loan of $100,000 after a year at an interest rate of 3 percent is:
A. $3,000.
B. $30,000.
C. $103,000.
D. $100,300.
A. $3,000.
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Suppose you are the monopoly owner of a movie theatre. You can allow people to enter the theatre at zero marginal cost, and you can provide popcorn at a constant marginal cost of $0.50 per bag. You have two customers, Larry and Terry, who are identical twins. Larry never buys popcorn under any circumstances. If you charge the monopoly price of $1.00 per bag for popcorn, Terry will buy 2 bags of popcorn and earn $0.50 in consumer's surplus, and you will earn $1.00 in profit from popcorn sales. If you charge the competitive price of $0.50 per bag for popcorn, Terry will buy 4 bags of popcorn and earn $2.00 in consumer's surplus, and you will earn no profit from popcorn sales.
(i) Suppose that Larry is willing to pay up to $8.00 to see the movie and Terry is willing to pay up to $5.00 to see the movie. How much should you charge for admission to the theatre and how much should you charge for popcorn? (ii) Suppose that Larry is willing to pay up to $4.00 to see the movie and Terry is willing to pay up to $5.00 to see the movie. How much should you charge for admission to the theatre and how much should you charge for popcorn?
Since the 1940s, the demand for labor has expanded equally for both skilled and unskilled workers
Indicate whether the statement is true or false
Lately, the ratio of debt to GDP has been
a. rising at a small rate. b. rising steadily. c. falling modestly. d. staying constant.
Discuss how unions affect prices indirectly.
What will be an ideal response?