Risk aversion helps to explain various things we observe in the economy, including
a. adherence to the old adage, "Don't put all your eggs in one basket.".
b. insurance.
c. the risk-return trade-off.
d. All of the above are correct.
d
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A large decrease in oil prices is an example of:
A. excessive aggregate spending. B. inflation inertia. C. an adverse inflation shock. D. a favorable inflation shock.
Which of the following statements regarding the agricultural industry is correct?
A) Economies of scale and consolidation have significantly reduced the degree of competition in the industry. B) Corporate farms now control more than 50 percent of the market for each of the major crops. C) The largest 5 percent of growers of any particular product are characterized by a small number of interdependent producers. D) Although farming has become increasingly concentrated over the last 70 years, it is still a highly competitive industry.
Scope of Services An apartment owner has contracted for lawn mowing services for a number of apartment complexes he owns. He negotiated a price per month but the scope of services to be performed remained a bit vague. Why is he disappointed that the winning contractor provides less than the desired level of services?
The federal government _______ securities (treasury bonds, notes, and bills) to cover its budget deficits.
a. buys b. sells c. trades d. creates