Which of the Following Is Not an Example of Indirect

question 74

Multiple Choice

Which of the following is not an example of indirect investment by a household?

• A) investment in a mutual fund's shares
• B) investment in an original offering of corporate securities
• C) investment in life insurance
• D) savings deposit in a bank

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Definitions:

Tariff

A tax imposed by a government on imports or exports of goods to regulate trade policies.

Excise Tax

A sales tax levied on a particular good or service; for example, gasoline and cigarette taxes.

Imported Good

A product or service brought into one country from another for use, sale, or consumption.

Comparative Advantage

Economic theory suggesting that a party should specialize in producing and trading goods that it can produce at a lower opportunity cost than others, leading to increased efficiency and profit.