A margin call is when:
A. prices on future values of a stock are forecasted to be lower than current prices.
B. prices on future values of a stock are forecasted to be higher than current prices.
C. it looks like you are in danger of running through your money, and your broker forces you to sell your stock and use the money to pay back your loan.
D. the market reaches a tipping point, and the financial bubble bursts.
Answer: C
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A few sellers may behave as if they operate in a perfectly competitive market if the market demand is:
A) highly inelastic. B) very elastic. C) unitary elastic. D) composed of many small buyers.
Happy Cows is a dairy farm that is currently earning $20,000 in economic profit. The managers of Happy Cows are considering adding a second dairy farm; however, the managerial diseconomies from adding the second farm cause Happy Cows current farm's economic profit to fall to $15,000. It is economically sound for Happy Cows to add the second farm if ________.
A) the second farm's economic profit is at least $4,800 B) the second farm's economic profit is at least $4,000 C) the second farm's economic profit is less than $5,000 D) the second farm's economic profit exceeds $5,000
Which of the following is a flow variable?
a. the number of cars registered in the U.S. b. the number of unemployed workers this week c. your total net worth yesterday d. the government debt this year e. a salary of $4,000 per month
Assume that Michaela purchases $12,000 worth of a stock. To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0% interest rate. If the stock's value increases by 20% in one year and she sells the stock at that time, what is her rate of return?
a. 13% b. 16% c. 20% d. 80%