You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.
A. less than 6%
B. exactly 6%
C. greater than 6%
D. It is indeterminate from the given information.
Answer: A
You might also like to view...
Nontariff barriers to trade are less transparent than tariffs
Indicate whether the statement is true or false
Federal government expenditures in the United States comprise about _____ of total government expenditures
a. 90 percent b. 75 percent c. 60 percent d. 45 percent
If, after careful analysis, an economist concludes that there has been a market failure, which of the following possible corrective actions might the economist favor? Why?
a. prohibiting the activity b. charging fees for continuing the activity c. requiring that the public be informed of the activity d. government purchase of the item for the public
Market failure means that
A. the law of supply and demand has stopped functioning. B. resources are not allocated efficiently. C. the stock market has crashed. D. prices are no longer reliable indicators of how much things cost.