Dana, a recent graduate with a degree in economics, turned down a job offer paying $50,000 a year and instead chose to become an entrepreneur. He borrowed $15,000 from a bank at a 10 percent interest rate and that was sufficient to pay for all his equipment, materials, and labor. Dana's accountant told him that the business generated a total revenue of $70,000 in the first year. How much of a
return on his entrepreneurial ability did Dana earn?
a. $7,000
b. $20,000
c. $18,500
d. $50,000
e. $70,000
C
Economics
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If American demand for purchases of British goods has decreased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically
What will be an ideal response?
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Which of the following is associated with a less elastic demand curve?
a. availability of many close substitutes b. a greater amount of time for consumers to respond to a price change c. a smaller percentage of income spent on the good in question d. all of the above
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