The process of holding a stock and accruing a further return over the second year is called
a. interest
b. making money
c. interest plus (+)
d. compounding
e. stock holding
d. compounding
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The majority of the federal government debt is held by government agencies
Indicate whether the statement is true or false
According to the HO model,
A) everyone automatically gains from trade. B) the gainers from trade outnumber the losers from trade. C) the scarce factor necessarily gains from trade. D) None of the above.
An arms race is an example of a _____
a. positive externality b. inframarginal positive externality c. Coasean solution d. prisoners' dilemma
The marginal productivity theory of distribution holds that
A. each factor is paid what it deserves. B. the owner of each factor is paid the amount that the factor contributes to earnings. C. each factor’s income depends on how hard it works. D. each factor receives an equal share of the revenue from production.