Pump and Dump

question 46

Multiple Choice

Pump and dump:

• A) is a term for downloading music.
• B) refers to posting stock information on the Internet to increase its value before you sell.
• C) is not prohibited by the SEC.
• D) both b and c

---

Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to efficient outcomes.

Marginal Revenue

The rise in earnings associated with the sale of one more unit of output.

Total Revenue Curve

A graphical representation showing how total revenue changes as the amount of goods sold varies.

Supply Curve

A graph showing the relationship between the price of a good and the quantity supplied, typically upward sloping, indicating that higher prices motivate more supply.