An increase in the number of corporations in a portfolio from 110 to 120 reduces
a. market risk by more than an increase from 1 to 10.
b. market risk by less than an increase from 1 to 10.
c. firm-specific risk by more than an increase from 1 to 10.
d. firm-specific risk by less than an increase from 1 to 10.
d
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A monopoly firm's demand curve
A) is more inelastic than the demand curve for the product. B) is inelastic at high prices and elastic at lower prices. C) is perfectly inelastic. D) is the same as the market demand curve.
Money facilitates trade because
a. it eliminates the need for specialization b. it prevents people from taking advantage of each other c. it serves as a medium of exchange d. division of labor allows money to be produced at a lower cost e. people do not benefit from barter unless money is used
In an efficient market, a scarce good generally has a ____ than a less-scarce good.
A. higher price B. higher total utility to consumers C. more even distribution across income classes D. lower price in off-peak periods
____ experience lower rates of unemployment than do ____
a. Teenagers; adults b. Adult males; adult females c. Skilled workers; unskilled workers d. Black females; white females