1. Which of the following is not a necessary component of a sound business model?

Creating a novel product

Making profits

Generating revenues

Producing free cash flows

2. A vacant commercial site is purchased for $150,000, a building is constructed on the site for a cost of $350,000. The improved property is then sold for $650,000. The single period return on cost to the developer is:

3. Briefly describe how changes in exchange rates affect international trade (export and import).