You hear someone claim that stocks are less risky than bonds. What possible evidence could this person offer for such a claim?
What will be an ideal response?
Professor Jeremy Siegel's research points out that when held for the long run stocks are less risky than if held for a very short time. In fact, Professor Siegel's research points out that between the years 1871 and 1992 there was no 30-year period when bonds outperformed stocks.
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For state residents, interest on most bonds issued by their state government is
A) exempt from state and federal income taxes. B) exempt from state, but not from federal, income taxes. C) exempt from federal, but not from state, income taxes. D) subject to both state and federal income taxes.
How do orange growers react to the news of medical research findings that suggest that eating oranges leads to greater health benefits than were previously known? a. They increase the supply of oranges
b. They increase the quantity of oranges supplied. c. They decrease the supply of oranges. d. They decrease the quantity of oranges supplied.
Suppose the production function is given by Q = 4K + 3L. What is the average product of labor when 10 units of capital and 5 units of labor are employed?
A. 4 B. 11 C. 3 D. 45
Exhibit 1A-1 Straight line
As shown in Exhibit 1A-1, the slope of straight line AB:
A. decreases with increases in X. B. increases with increases in X. C. increases with decreases in X. D. remains constant with changes in X.