The risk of a portfolio
a. increases as the number of stocks in the portfolio increases.
b. is usually measured using a statistic called the standard diversification.
c. is positively related to the average return of the portfolio.
d. bears no relationship to the average return of the portfolio.
c
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Refer to Figure 2-14. What is the opportunity cost of producing 1 popsicle in Greenland?
A) 2/3 of a snow cone B) 5/6 of a snow cone C) 1 1/5 snow cones D) 240 snow cones
The statement "Resources employed in producing X are better suited to making Y" is another way of saying resources
a. are specialized. b. are scarce. c. are used inefficiently. d. are unproductive. e. have no opportunity cost.
In short-run equilibrium, a competitive price-taker firm
a. may earn a profit or a loss. b. always earns a profit. c. never earns a profit. d. earns a profit only if the firm has no fixed cost.
At the socially optimum quantity of production, price equals:
A. average total cost. B. marginal revenue. C. average variable cost. D. marginal cost.