Economics Homework Eleven Answers - Student Nine

Economics Homework #11

Mark B.

1. Instead of loaning money, I could invest the same amount of money and earn more. Interest makes it profitable to loan money.

Good answer.

2. $1102.50

Correct!

3. It is a fixed cost, because the cost doesn't change when more people go.

Right again.

5. 1000/(1.1 x 1.1) = 1000/1.21 = $826.45

Superb.

6. Question 14: I misread the question. When price increases, producers want to make more money by making more product.

Right. Everyone could pick up an extra few points on these exams by being sure to read the questions carefully. This is particularly important for economics questions, where misreading questions is common. It's good you recognize this source of error. Well done.

Perfect! 50/50. Congratulations.--Andy Schlafly 20:03, 5 December 2009 (EST)