Which of the following pairs of portfolios exemplifies the risk-return tradeoff?
a. For Portfolio A, the average return is 6 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 6 percent and the standard deviation is 25 percent.
b. For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
c. For Portfolio A, the average return is 5 percent and the standard deviation is 25 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 15 percent.
d. For Portfolio A, the average return is 5 percent and the standard deviation is 15 percent; for Portfolio B, the average return is 8 percent and the standard deviation is 25 percent.
d
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Paul and Maggie advertise for a babysitter. Jenny is the only one who answers the ad and she's hired. She asks for $7 per hour and gets it. She occasionally thinks of raising the rate to $10 but is afraid that Paul and Maggie will decide to advertise again. This tale is analogous to
a. monopolistic competitive pricing b. the idea of nationalization c. contestable markets d. laissez-faire e. creative destruction
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service
a. True b. False Indicate whether the statement is true or false
Assume that when $100 of new reserves enter the banking system, the money supply ultimately increases by $800 . Assume also that no banks hold excess reserves and that the entire money supply consists of bank deposits. If, at a point in time, reserves for all banks amount to $750, then at that same point in time, loans for all banks amount to $6,000
a. True b. False Indicate whether the statement is true or false
A monopolist:
A. can never incur losses. B. earns a profit in the short run but not in the long run. C. earns a profit in the short run and the long run. D. can earn profits or incur losses in the short run.