Which is the best example of idiosyncratic risk?
A) a financial crisis
B) a lawsuit because the corporation produced a faulty product
C) a recession
D) rising interest rates
B
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The more firms that are attracted to an industry, the greater will be the quantity of product supplied at any given price.
Answer the following statement true (T) or false (F)
Explain the two basic mechanisms that increase GDP per capita over the long term
What will be an ideal response?
Nations that borrow from abroad to support current investment will
A) always sacrifice future consumption. B) sacrifice future consumption only if the investments are profitable. C) always be better off in the future. D) be better off in the future if the investments are profitable.
Assume you and your best friend set up a partnership and your lawyer tells you that as the owners, you could each stand to lose your personal wealth if the business goes bankrupt. This means a partnership
A) faces limited liability. B) has little chance of succeeding. C) faces unlimited liability. D) is not a good type of business to set up.