If a firm wants to borrow $10 million and the real interest rate increases from 5 percent to 6 percent, then the cost of the investment has increased by
A) $6 million per year.
B) $100,000 per year.
C) $1 million per year.
D) $600,000 per year.
E) nothing because the real interest rate is the return the firm will earn on its investment.
B
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Entrepreneurship is
A. the financial capital necessary to launch a new business. B. the talent to develop new products and processes and to organize production to make goods and services available. C. unskilled labor. D. the capital resources used to produce goods and services.
In 2012, the nominal wage rate for unionized carpenters was $37.50 and the CPI was 204. Calculate the real wage rate for this group of workers
A) $5.44 B) $18.38 C) $47.09 D) $1.84 E) $37.50
Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include
A) depreciation and investment. B) exports and imports. C) personal taxes and corporate taxes. D) indirect taxes and subsidies.
A movie costs you and your friend $15 each. After one hour of watching the movie, you have struggled to stay awake while your friend has been on Facebook and is also bored with the movie. You suggest that you and your friend leave the movie and go to the park. Your friend responds by stating that he is not going to waste his $15 that was previously spent on the movie. Your friend is considering:
A. an opportunity cost of the movie. B. the marginal benefit. C. the sunk cost. D. Total costs