David increases the number of companies in which he holds stocks
a. This reduces risk's standard deviation and firm-specific risk.
b. This reduces risk's standard deviation and market risk.
c. This raises market risk, but lowers firm-specific risk. What happens to overall risk is unclear.
d. This raises firm-specific risk, but lowers market risk. What happens to overall risk is unclear.
a
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In a competitive industry where different firms have different cost structures, the industry supply curve is:
A) upward sloping. B) downward sloping. C) vertical. D) horizontal.
In a sequential contestable market game
A) a small number of firms can behave like firms in perfect competition. B) the outcome is always a monopoly equilibrium. C) the dominant firm always makes a monopoly profit, while other firms make zero economic profits. D) a firm that enters the market first is protected from potential entrants by natural barriers.
The factor of production called "capital" refers to:
A. manufactured goods that are used to produce new goods. B. any piece of raw material that is used to produce goods and services. C. any input that's not a human being or dirt. D. the amount of money a firm has access in order to run its business.
The national debt
A) is the sum of all past federal deficits plus any surpluses. B) grows when the government runs a deficit. C) grows when government spending increases. D) is a major problem facing the U.S. government.