Which of the following is true?
A) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.
B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
C) Stock market investors can reduce their risk if they hold shares of specific stocks for only short periods of time.
D) People who invest in the stock market are virtually certain to make money.
B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
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Which of the following statements is true of market prices in a perfectly competitive market?
A) Market prices are determined by the government. B) Market prices allow for efficient allocation of scarce resources. C) Market prices are not stable and fluctuate widely. D) Market prices do not act as incentives for buyers.
Who would be more likely to study the effects of foreign competition on the accounting industry, a macroeconomist or a microeconomist?
All of the following are key features of the federal government's new national health care program EXCEPT
A) people must either purchase health insurance or pay a fine to the federal government. B) a young person in good health can opt not to purchase health insurance without penalty. C) firms with at least 50 employees must either provide health insurance or pay fines when uninsured employees receive tax subsidies to purchase insurance. D) government-directed exchanges will assist in matching individuals and small businesses with health insurance policies that satisfy government requirements.
Unemployment was fairly low during
A. The 1930s. B. World War II. C. The Great Depression. D. The recession of 1981