Answer the following statements true (T) or false (F)
1) The risk-free interest rate is the rate on long-term U.S. government bonds.
2) The fact that people prefer to consume in the present rather than the future is referred to as
time preference.
3) Short-term U.S. government bonds are considered to be risk-free.
4) The Security Market Line depicts the inverse relationship between the average expected rates
of return and risk levels of financial assets.
1) F
2) T
3) T
4) F
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Refer to the information above. Net investment becomes more unstable if j ________ and v* ________
A) rises, rises B) rises, falls C) falls, rises D) falls, falls
A patent provides legal protection for an invention for
A) 20 years. B) 9 years. C) 5 years. D) 3 years.
When real GDP increases, this implies that the production of goods and services has risen
a. True b. False Indicate whether the statement is true or false
Which of the following helps in determining whether health care cost rises because of government policy, or because of demand rising faster than supply?
a. Examining the market for health care away from the belief that the market outcome is unfair b. Examining the market for health care with the belief that the market outcome is unfair c. Examining the allocation system d. Examining the changes in the price of health care products e. Examining the changes in the number of suppliers of health care in the market