Question 1
You borrow $75,000 at an interest rate of 3% to open Spinners, a bicycle shop. You will earn an economic profit if the return on your investment is
◦ greater than 3%.
◦ 3%.
◦ between 0 and 3%.
◦ 6% or less.
Question 2
The most important dimension of capital is
◦ immediate returns.
◦ depreciation.
◦ the interest rate.
◦ time.