Multiple Choice
You use $50,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of
A) -$4,000.
B) $1,000.
C) $4,000.
D) $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q108: The benefits of any investment project take
Q109: If the interest rate is 4 percent,
Q110: Owning a share of stock entitles the
Q111: Saying a firm will continue investing up
Q112: You lend your sister's daughter $2,000 for
Q114: Assume that the current interest rate is
Q115: Suppose that a national election occurs that
Q116: Capital stock is defined as the retail
Q117: Infrastructure, such as public works and public
Q118: Refer to the data provided in