How do ponzi schemes work?
What will be an ideal response?
Ponzi schemes are based on a trust relationship between the investor and the scheme’s promoter. The promoter promises new investors high or steady returns for making the investment. As the money gets invested, the promoter uses funds from new investors to pay high returns to current investors into the scheme. The scheme can work so long as there is a steady stream of new funds to continue paying high returns to the current investors. In the process the scheme’s promoter siphons off some of the funds to be used for personal enrichment.
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You are the new vice president in charge of advertising at Taco Bell. In your upcoming advertising campaign, you plan to degrade the fast food competitor whose product is the closest substitute for Taco Bell's tacos
That would be the fast food chain whose cross elasticity of demand with your tacos is equal to A) negative 2.11. B) negative 1.75. C) positive 1.55. D) positive 1.00.
An increase in the demand for American-made goods will
A) decrease the supply of dollars on the foreign exchange market. B) decrease the demand for dollars on the foreign exchange market. C) increase the demand for dollars on the foreign exchange market. D) increase the supply of dollars on the foreign exchange market.
The size of the multiplier depends in part on the
A) level of autonomous expenditures. B) change in autonomous consumption. C) level of consumption. D) marginal propensity to consume.
The supply of a good is more price elastic,
a. the fewer alternatives there are to producing the good in question b. the more broadly the market for the good is defined c. the longer the time horizon over which it is measured d. the higher the cost of production e. the more elastic the demand for that good.