1)Jonathan received a loan of $2000 from the bank. If the simple interest on the 3 month loan is $40, what is the rate charged by the bank?

Group of answer choices

4.5%

4%

2%

8%

2)

Mercy got a $25,000 loan from Capital Bank. What is the simple interest on the loan if the interest rate is 8% and needs to be paid back in 6 month?

Group of answer choices

$1000

$4000

$2000

$2500

3)

Rose received a $1000 loan from Bank of America at a 12% rate and paid a simple interest of $60. What was the timeline to repay the loan?

Group of answer choices

6 months

2 years

1 year

3 months

4)

James got a $10,000 loan from Wells Fargo bank. If he pays back the loan in a year, he would have paid back $12,000. The difference between what he paid back and the original loan is also known as _____________________

Group of answer choices

future value (FV)

principal

annuity

interest

5)

Find the elasticity of demand of capital borrowing when interest rate increases from $10 to $11?

Interest rate	Quantity of DD Borrowing	Quantity of SS Borrowing
10	480	90
11	400	100
12	300	150
13	250	300
14	100	400
15	80	500

Group of answer choices

0.8

1.23

1.90

8

6)

Suppose the price and supply of melons are related by p=S(q)=0.20q

P= price (in dollars), q is the quantity demanded (in hundreds of quarts). Find the quantity supplied at $8.

Group of answer choices

4000

2400

2000

1600

7)

Thomas makes a gross income of $2400 and he saved $200. His tax was $500. How much of his income was spent( consumption)?

Group of answer choices

$2100

$3100

$2200

$1700

8)

James has opened a new payday loan store across the street. He is charging his clients 25% which is in violation of the county law which states that that financial institutions in the county cannot charge customers above 18%. The laws that impose an upper limit on the interest rate that lenders can charge is also known as ___________

Group of answer choices

Interest rate law

usury law

financial capital law

Glendale county law 25.41

9)

Suppose the price and supply of the ipods are related by p=S(q)= 0.85q: where p= price and q=quantity supplied (in hundreds) of ipods. Find the quantity supplied if the price is $50.

Group of answer choices

42.5

15

4250

5882

10)

Jerry was working as a dish washer at Hyatt Hotel for years. A few months ago, the hotel installed automatic commercial dish washing machines. The demand for this low skill labor shifts to ______________due to the commercial dish washing machine.

Group of answer choices

the right

Marginal labor point (MLP)

the left

the center

11)

Price ($)	Quantity Demanded	Quantity Supplied
2	10	2
3	8	4
4	6	5
5	4	6
6	2	9
7	1	12

Use the midpoint method for elasticity. Calculate the price elasticity of demand as price moves from $5 to $6 above

Group of answer choices

3.67

0.33

2

1.33

12)

Minimum wage is a good example of ?

Group of answer choices

Price floor

Labor Supply

Elastic demand of labor

Price Ceiling

13)

WalMart realizes that it's generic toothpaste "Shine toothpaste" is an elastic product. What are the most likely decision that the company would embark on?

Group of answer choices

Raise the price to stay competitive with Colgate and Close Up

Invest in advertisement on TV and social media. Then leverage that popularity to raise price in order to be profitable

Reduce the price in order to stay competitive with Colgate and Close Up

Produce a toothbrush so customers buy both toothpaste and toothbrush. Slightly raise price for both to stay profitable in the industry

14)

Suppose the average worker at McDonald's makes $15/hour. LA county sets a minimum wage of $20. How would the supply and demand curve of workers in McDonald's look like?

Group of answer choices

Labor Supply for McDonald's workers will outpace demand leading to excess supply of workers

Businesses will increase the price of fastfood at McDonald's to cover for the increasing wages of its workers due to the price celing created by the county

The demand curve will move to the right signalling a reducing demand for workers due to the excessively high wages demanded by the county

The business will have to lay off workers in order to reduce wages

Question 15

What is the difference between elastic and inelastic demand?

Group of answer choices

Specifically, the price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. The price elasticity of supply is a measure of the responsiveness of quantity supplied to changes in price. Specifically, the price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.

demand is elastic if the percentage change in quantity is greater than the percentage change in price. Demand is inelastic if the percentage change in quantity is less than the percentage change in product.

demand is elastic if the percentage change in quantity is greater than the percentage change in price. Demand is inelastic if the percentage change in quantity is less than the percentage change in price.

Inelastic goods have elasticity of more than one while elastic goods have elasticity of less than one