Whenever individuals think about investing money in stocks, bonds, or real estate, they must consider:
A. the trade-off between future value and expected value.
B. the opportunity cost of the risk involved.
C. the trade-off between risk and expected value.
D. the opportunity cost of the expected value.
C. the trade-off between risk and expected value.
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In the above figure, the long-run equilibrium price level is
A) 150. B) 130. C) 110. D) not displayed.
Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include:
a. cash bonuses based on length of service with the firm b. bonuses for resisting hostile takeovers c. requiring officers to own stock in the company d. large corporate staffs e. a, b, and c only
In perfect competition, environmental externalities need not distort the allocation of resources providing:
a. transactions costs are zero. b. average costs are constant for all output levels. c. firms install pollution control equipment. d. the government sets realistic pollution standards.
What economic framework can inform the debate on immigration?
What will be an ideal response?