Assume That the Current Interest Rate Is 7

question 33

Multiple Choice

Assume that the current interest rate is 7%. You invest $10,000 of your own money in a restaurant that you own and operate. The normal return on this investment is

• A) $0, as you used your own money.
• B) $700, as that is the interest forgone by not lending the money to someone else at a 7% interest rate.
• C) $10,000, as that is the amount invested in the restaurant.
• D) $10,700, the amount invested plus the interest charge on the investment.

Assess the impact of unions on wage rates.

Analyze the effects of work stoppages on overall work time.

Determine the variance in unionization rates among different occupations.

Understand the motivations and impacts of the Second New Deal.

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Definitions:

Motivational Theories

Theories that explain what drives individuals to initiate, direct, and sustain behaviors to meet their needs and goals.

Theory X

A management assumption that employees are inherently lazy and will avoid work if possible, hence the need for control and direct supervision.

Theory Y

A management approach that assumes employees are inherently motivated and enjoy their job responsibilities, advocating for a participative style of management.

Generation X

The demographic cohort following the baby boomers, typically defined as individuals born from the early-to-mid 1960s to the early 1980s.