Buying a diversified mutual stock fund allows you to
A) completely avoid all types of risk.
B) avoid only random, unsystematic risk.
C) avoid only systematic risk.
D) avoid risk only when all the stock prices are perfectly correlated.
B
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In the short-run, an appreciation in the value of the U.S. dollar will tend to cause ________
A) a decrease in the level of income and higher inflation B) an increase in the level of income and higher inflation C) an increase in the level of income and lower inflation D) a decrease in the level of income and lower inflation
Consumption spending comprises what percentage of total spending?
A) 0.7 percent B) 7 percent C) 70 percent D) 700 percent
Marginal revenue for a perfectly competitive firm equals: a. the addition to total cost from producing one more unit of output. b. average revenue at all levels of output
c. marginal cost at all levels of output. d. average total cost at all levels of output.
The "guns versus butter" dilemma that all nations confront is that
A. An increase in national defense implies more sacrifices of civilian goods and services. B. Guns and butter can be produced using the same resources at the same time. C. An increase in national defense is possible only if we produce more butter. D. All of the choices are correct.