Economics Homework Eleven Answers - Student Eleven

AllieT.

1. If I were to loan someone money, then I would ask that person to pay me interest in return. I would do this to insure that I would receive my money back in a timely manner.

Not quite, because charging interest does not help insure that the amount loaned will be repaid. (Minus 1).

2. The total I would pay back would be $1102.50

Correct!

3. Fixed cost because we are assuming that there is one and only bus being used. The cost would vary if there were other bus companies in operation because competition would allow different companies to have different prices. However, with the one option the price is the same, therefore, you have a fixed cost.

Excellent.

4. Competition is the best self-motivator, so that you can achieve more. Competing with others forces you to want to be better and achieve as much as you can.

Superb.

5. $1000/ 1.10 = 909.09 -> 909.09/ 1.10= $826.45. I would pay you $ 826.45 in order to receive $1000 in two years.

Correct! Well done!

Superb work. 49/50.--Andy Schlafly 20:15, 10 December 2009 (EST)