"My son is a smart entrepreneur. Rather than borrow money from others, he used his own savings to start his music business, and thereby avoided paying interest on loans." An economist would respond by saying
A) "both you and your son are complete idiots."
B) "it's always good to avoid borrowing and paying interest."
C) "nobody can avoid paying interest, not even your clever son."
D) "your son might have avoided paying interest, but he also avoided earning interest."
D
Economics
You might also like to view...
In calculating GDP, household production is
A) included as part of consumption. B) ignored because it is not a large amount. C) not included because there is no market transaction. D) included under employee compensation.
Economics
As a percentage of GDP, non-military government purchases have remained very low and stable
a. True b. False
Economics