You Use $45,000 of Your Own Money to Start an Espresso

question 179

Multiple Choice

You use $45,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate is 8%, you earn an economic profit of

• A) -$900.
• B) $100.
• C) $500.
• D) $900.

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Definitions:

Non-price Factors

Elements that influence consumer decision making and market trends, such as product quality, brand loyalty, and consumer preferences, aside from the price.

Rent Control

Government-imposed limits on the amount landlords can charge for leasing property, intended to keep housing affordable.

Landlords

Owners of property who rent out space (residential, commercial, or land) to tenants, generating income from the lease agreements.

Quality of Housing

A measure of the condition, facilities, and amenities available in living accommodations, impacting the well-being and comfort of residents.