Author Question: My son is a smart entrepreneur. Rather than borrow money from others, he used his own savings to ... (Read 38 times)

james9437 · **on:** Jun 29, 2018

My son is a smart entrepreneur. Rather than borrow money from others, he used his own savings to start his music business, and thereby avoided paying interest on loans. An economist would respond by saying

A) both you and your son are complete idiots.
B) it's always good to avoid borrowing and paying interest.
C) nobody can avoid paying interest, not even your clever son.
D) your son might have avoided paying interest, but he also avoided earning interest.

Question 2

The ________ the Herfindahl-Hirschman Index, the ________.

A) lower; more concentrated the industry
B) higher; more concentrated the industry
C) higher; less concentrated the industry
D) lower; higher the profits earned in the industry