Diversification involves:
A. investing all your money in one company.
B. investing all your money in the same type of financial assets, with the same amount of risk.
C. investing all your money in a variety of financial assets, with varying amounts of risk.
D. None of these statements is true.
C. investing all your money in a variety of financial assets, with varying amounts of risk.
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
If tastes are identical between countries, then comparative advantage is determined by
A) supply conditions only. B) demand conditions only. C) supply and demand conditions. D) Can't tell without more information.
Measures which aim at eliminating the income disparity between the rich and the poor affect incentives to work, innovate, take risks, acquire education, and so on
a. True b. False Indicate whether the statement is true or false
Price discrimination
A. may lead to greater output B. always leads to a reduction of output C. leads to lower profits for the firm D. cause firms to operate at a higher cost