You withdraw some of your savings to invest in a new business venture. Which of the following statements is true?
a. The return you will earn from this new investment is your opportunity cost.
b. The interest rate you would have earned in the bank is higher than the return from this investment.
c. The return you expect to earn from this new investment must exceed your opportunity cost.
d. The return you expect to earn from this new investment must equal your opportunity cost.
C
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Bank failures tend to occur most often during periods of:
A. recessions when many borrowers have a difficult time repaying loans and lending activity slows. B. stock market run ups when, like many companies, banks tend to be overvalued. C. wars and other civil unrest. D. high inflation when the fixed rate loans of many banks cause their real returns to decrease.
QN=65 (17767) Suppose there are only two firms in an economy: Cowhide, Inc. produces leather and sells it to Couches, Inc., which produces and sells leather furniture. With each $1,000 of leather that it buys from Cowhide, Inc., Couches, Inc. produces a couch and sells it for $3,000. Neither firm had any inventory at the beginning of 2009. During that year, Cowhide produced enough leather for 20 couches. Couches, Inc. bought 80% of that leather for $16,000 and promised to buy the remaining 20% for $4,000 in 2010. What was the economy's GDP for the 2009?
a. $48,000 b. $52,000 c. $64,000 d. $68,000
Place point X on the graph to indicate an unemployment rate of 10 percent.
The tax fully dedicated to provide support for Medicare Part A is:
a. a tax on the health insurance premiums paid for all group plans. b. a 2.9 percent payroll tax paid by all workers, regardless of their age. c. the federal income tax. d. levied on the Medicare Trust Fund. e. the mandate tax paid by individuals who do not purchase health insurance.