The ability of diversification to reduce risk
A) is greater the more negatively correlated the two events are.
B) is greater the more positively correlated the two events are.
C) is greater the more uncorrelated the two events are.
D) is greater the more risk averse the individual is.
A
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Suppose the United States discovers a way to produce clean nuclear fuel. The effect of this discovery would be to
A) lead the United States to produce less nuclear fuel. B) force the United States to produce at a point inside its PPF. C) shift the U.S. PPF outward. D) shift the U.S. PPF inward.
The extra benefit resulting from a small increase in an activity is called the:
A. opportunity cost. B. marginal benefit. C. marginal cost. D. diminishing returns of the activity.
The "economic problem" is that given scarce resources, how do large societies go about answering the basic economic questions of what will be produced, how it will be produced, and who will get it.
Answer the following statement true (T) or false (F)
The U.S. individual income tax is designed to be
A. progressive. B. an ability-to-pay tax. C. regressive. D. proportional.