For assessing whether or not and how much of an asset to hold, the important consideration is the asset's amount of
A) diversifiable risk.
B) nondiversifiable risk.
C) relative risk.
D) absolute risk.
B
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What will be an ideal response?
How is the official poverty line determined in the United States? What alternative method of measuring poverty has been suggested? Explain
What will be an ideal response?
Situation 4-1 During the winter of 1973-74, a general system of wage and price controls (including a price ceiling on gasoline) was in force in the United States. At the beginning of 1974, some oil-producing countries imposed an oil embargo (a legal prohibition on commerce) on the West. In the spring of 1974, price controls were abolished. Refer to Situation 4-1. Because price controls were in
effect at the time the embargo occurred, an economist would have most likely predicted that A) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would increase sharply. B) the number of dollars one would need to pay at the pump (legally) for a full tank of gasoline would decline sharply. C) long waiting lines and black markets would appear. D) a surplus of gasoline would result.
If the government were to restrict consumption to the efficient level in a market where a negative externality is present, the market outcome:
A. would not be efficient. B. would be equitable. C. would then be efficient. D. None of these statements is necessarily true.