In general, the riskier the investment, the _____________________ the potential profit rate.
Fill in the blank(s) with the appropriate word(s).
higher
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Public education is priced below market price largely as a result of
A) government subsidy programs. B) under-funded public education. C) rising test scores by students. D) taxpayers who contribute little to the funding of public education.
Which of the following creates a positive externality?
a. a paper mill polluting a river b. a stock market crash c. a neighbor that beautifies her lawn d. taxes and subsidies e. the greenhouse effect
After a period of price stability in the 1990s, housing prices increased dramatically during 2002-2005 because
a. regulations designed to make housing more affordable increased the demand for housing and drove housing prices upward. b. regulations designed to make housing more affordable decreased the number of sub-prime loans and made home buying a safer investment. c. mortgage lending standards tightened, and therefore mortgage loans for housing were only available to buyers purchasing highly expensive homes. d. home buyers were putting more money down and requiring more return on their investment, driving housing prices up.
Authoritarian political regimes
a. never produce sound economic institutions, due to corruption. b. have produced movement toward sound economic institutions in Chile, South Korea and several other nations. c. will generally produce sound economic institutions and policies. d. are necessary for the emergence of sound institutions, but not for their continued operation.