When investors use borrowed funds to pay for investments, it's called:
A. leveraging.
B. tulip mania.
C. hedging.
D. herding.
Answer: v
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A cartel maximizes industry profit by:
A. eliminating quotas. B. producing at the kink in its demand curve. C. producing where MR = MC. D. producing more output than a monopoly would.
A government policy generates $10,000 of benefits to underprivileged youth at a cost of $5,000 to taxpayers. The policy is Pareto efficient.
Answer the following statement true (T) or false (F)
If you were a member of the NBER business-cycle dating committee, would you declare that the U.S. economy is now in a recession? Why? Describe the major variables that you would look at to determine whether the economy is in a recession or not, and what features of the data you would look for.
What will be an ideal response?
Monopolies such as those created by copyrights and patents
A. inhibit but do not prevent innovation and authorship. B. lower prices. C. stifle innovation and authorship. D. are necessary to motivate innovation and authorship.