The First National Bank Lends Simmons $1,000

question 25

Multiple Choice

The First National Bank lends Simmons $1,000. Simmons agrees to pay the bank the original loan plus $1,500 interest within a six-month period. This is an example of a(n)

• A) revolving loan.
• B) usurious loan by the First National Bank.
• C) price-fixing agreement.
• D) exculpatory clause in a contract involving a loan of money.

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Definitions:

Total Costs

The comprehensive sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Profit-maximizing Monopolist

A monopolist that determines the quantity of output that maximizes its profits, considering its total revenue and total cost.

Level of Output

The total amount of goods or services produced in an economy over a certain period of time.

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.