The value of a virtual chat room to an individual user increased as more people started using it. This is an example of a(n) ________
A) moral hazard
B) adverse selection
C) network externality
D) negative externality
C
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In 2009, Congress passed tax laws to reduce income tax rates for some taxpayers. This action is called
A) a discretionary fiscal policy. B) a discretionary revenue policy. C) an automatic fiscal policy. D) an annual tax policy. E) induced tax policy.
If you lost 50 percent on $100 worth of stock in a 3x margin account, then you would lose:
A. $50. B. $150. C. $300. D. $600.
According to the law of comparative advantage,
a. individuals and nations gain when they specialize in producing those goods they consume. b. individuals and nations gain when they specialize in producing goods they can produce at a high opportunity cost and can exchange for other desired goods they can produce cheaply. c. individuals and nations gain when they specialize in producing those items for which they are the low opportunity cost producers and exchange for other desired goods they can't produce as cheaply. d. all of the above are true.
The U.S. federal government finances budget deficits by
a. selling stock, much like a corporation. b. printing additional currency. c. borrowing from the public. d. raising property taxes.