Ponzi schemes are investments in which:
A. funds are invested solely in high-risk foreign financial assets.
B. all investors are guaranteed to lose money.
C. investors are unknowingly paid returns from funds contributed by new investors.
D. the profitability of the investments depends on whether the economy grows or is in
recession.
C. investors are unknowingly paid returns from funds contributed by new investors.
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Which of the following would lead GDP to overstate economic welfare?
A) the existence of home-cooked meals B) restaurant workers that under-report tip income C) a self-employed CPA who takes a longer than normal vacation D) electric utilities that switch to burning coal because of higher natural gas prices and thereby create more acid rain pollution
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The marginal cost of the 5th T-shirt is
A) 2. B) 10. C) 12. D) 60.
Trade diversion reduces worldwide efficiency, because:
a. production is diverted to the country with the comparative advantage. b. production is diverted from the country with the comparative advantage. c. unnecessary trade restrictions are created in the economies. d. consumption is diverted to the country having inadequate demand. e. the cost of transshipment of the goods increases thus raising their prices in the world market.
Pure monopoly is not studied because of its descriptive realism, but because it is a stepping stone toward more realistic models
a. True b. False Indicate whether the statement is true or false