Market risk is:
a. The chance that financial assets cannot be sold quickly and without substantial loss of value.
b. The chance of a change in the market value of a security due to changes in macroeconomic variables, such as interest rates or exchange rates.
c. The risk that credit cannot be expanded by the banking system due to a central bank regulation.
d. The chance that borrowers will be unable or unwilling to repay their debts.
.B
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Environmental pollution is accounted for in ________.
A. DI B. GDP C. PI D. None of these
Which of the following will not contribute to higher wage rates for labor?
a. increased unionization and decreased nonunionization of employees in the economy b. a rapid increase in the demand for labor c. significantly relaxed immigration standards d. increases in technological advances that are substitutes for labor
The effective tax rate is the
A. highest income tax rate minus the lowest income tax rate. B. share of income a household pays in taxes, minus any transfer payments. C. share of income a household pays in taxes. D. percentage of an additional dollar that a household would pay in taxes.
Which of the following has contributed to developing countries' poor economic performance?
A. low population growth B. a high saving rate C. corruption D. foreign direct investment