Which of the following is a risk that investors undertake when purchasing stocks?
a. An individual stock can rise and fall unpredictably.
b. Nearly all stocks in the stock market may rise or fall together, when expectations about the entire economy change.
c. Both a and b are true.
d. Neither a nor b is true.
C
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If food is measured on the horizontal axis of budget line diagram, and clothing is measured on the vertical axis, an increase in
a. the price of clothing will make the budget line steeper b. income will make the budget line steeper c. income will make the budget line flatter d. the price of food will make the budget line steeper e. the price of food will make the budget line flatter
Total state and local government spending in 2007 was
a. less than $100 billion b. approximately $500 billion c. nearly $1.9 trillion d. approximately $10 trillion e. more than $25 trillion
Consider a consumer of baked beefsteaks and fried fish fillets. Suppose the price of a plate of baked beefsteak is $8 and that of fried fish fillets is $10 at a restaurant. If the marginal utility of baked beefsteak to the consumer is 20 units, compute the marginal utility of fried fish fillets, assuming that the consumer is in equilibrium
a. 12 units b. 20 units c. 25 units d. 80 units
The parity principle stems from
a. a manager delegating a task b. union pay negotiations c. one-way communication d. none of the above