Risk-averse individuals will diversify their investments because this will:
a. increase their expected returns.
b. provide them with some much-needed variety.
c. reduce the variability of their returns.
d. reduce their transaction costs.
c
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If over the next six months inflation is higher in the U.S. than in foreign countries, then according to purchasing-power parity
a. only the nominal exchange rate depreciates. b. both the real and nominal exchange rate appreciate. c. both the real and nominal exchange rate depreciate. d. only the real exchange rate appreciates.
Suppose total benefits and total costs are given by B(Y) = 600Y ? 12Y2 and C(Y) = 20Y2. What is the maximum level of total benefits?
A. 1,600 B. 7,500 C. 2,812.5 D. None of the statements associated with this question are correct.
Since their introduction, prices of Blu-ray players have fallen and the quantity purchased has increased. This statement:
A. suggests that the supply of Blu-ray players has increased. B. suggests that the demand for Blu-ray players has increased. C. constitutes an exception to the law of demand in that they suggest an upward-sloping demand curve. D. constitutes an exception to the law of supply in that they suggest a downward-sloping supply curve.
Marginal revenue (MR) is
A. TR/q. B. P x q. C. ?TR/?q. D. P/q.