You lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,100. The interest rate on this loan is
A. 4.50%
B. 5.00%.
C. 5.50%.
D. indeterminate from this information.
Answer: C
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Consider the production possibilities frontier in the figure shown. The opportunity cost of moving from point A to point B is:
A. 5 cigars per car. B. 5 cars per cigar. C. 10 cars per cigar. D. 10 cigars per car.
Entitlements and net interest are the ________ the U.S. federal budget
A) two fastest-growing components of B) only two declining components of C) only two components with negative values in D) two slowest-growing components of
The gravity model offers a logical explanation for the fact that
A) trade between Asia and the U.S. has grown faster than NAFTA trade. B) trade in services has grown faster than trade in goods. C) trade in manufactures has grown faster than in agricultural products. D) Intra-European Union trade exceeds international trade by the European Union. E) the U.S. trades more with Western Europe than it does with Canada.
For a typical consumer, most indifference curves are bowed inward
a. True b. False Indicate whether the statement is true or false