If I Borrow $20 000 at a Simple Interest Rate

question 47

Multiple Choice

If I borrow $20 000 at a simple interest rate of 6% per annum,how much interest would I owe after six months?

• A)$1 200
• B)$600
• C)$21 200
• D)$20 600

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology.

Immigrants

People who come to live permanently in a foreign country from their country of origin.

Pure Capitalism

An economic system characterized by the private ownership of resources and the use of prices to coordinate economic activity in unregulated markets.

Economic Question

A query that addresses how to allocate scarce resources to satisfy unlimited wants and needs.