Owen Expects to Receive $30,000 at the End of Next

question 39

Multiple Choice

Owen expects to receive $30,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 8.2%, how much money can he borrow from the bank on the basis of this information?

• A) $2460
• B) $13,863
• C) $27,726
• D) $32,460

---

Definitions:

Efficient Output Level

The quantity of goods or services produced where the marginal cost of production equals the marginal revenue received, leading to optimal allocation of resources.

Units

Standard quantities used to specify measurements and quantify the magnitude of physical quantities.

Perfect Competition

A market structure characterized by a large number of small firms, homogenous products, perfect information, and no barriers to entry or exit, leading to price-taking behavior.

Demand Curves

Graphical representations showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at different prices.