Anna borrows $5,000 from a bank and withdraws $1,000 from her personal savings to start a coffee shop. The interest rate is 5 percent for both the bank loan and her personal savings. Her opportunity cost of capital is $250
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
A self-managed team is still headed by a boss
Indicate whether the statement is true or false
Larry buys stock in A to Z Express Company. Curly Corporation builds a new factory. Whose transaction would be an act of investment in the language of macroeconomics?
a. only Larry's b. only Curly Corporation's c. Larry's and Curly Corporation's d. neither Larry's nor Curly Corporation's
If the government decides to levy an ad valorem tax on product with a perfectly inelastic supply. The consumers tax incidence will be
A) 0 B) 1 C) .5 D) Cannot be determined.
When DVD players start becoming obsolete then, to potential thieves, the:
A. Marginal utility of stealing them increases B. Marginal utility of stealing them decreases C. Marginal cost of stealing them increases D. Marginal cost of stealing them decreases