The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line
A) Investors A and B will hold the same portfolio.
B) Investors A and B will have different portfolios of the same standard deviation.
C) Investors A and B will have different portfolios of the same rate of return.
D) Investors A and B will have different portfolios but have the same level of risk aversion.
E) Investor A will expect to earn a lower rate of return than investor B.
E
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An externality is an unintended ____ imposed on ____ as a result of the ____
a. c or d b. cost; sellers; negligence of others c. cost; third parties; economic activity of others d. benefit; third parties; economic activity of others e. benefit; sellers; beneficence of others
Which of the following is false?
a. A production possibilities curve represents the potential total output combinations of any two goods for an economy. b. On a production possibilities curve, we assume that the economy has a given quantity and quality of resources and technology available to use for production. c. If an economy is operating inside its production possibilities curve, it is not at full capacity, and is operating inefficiently. Such an economy's actual output is less than potential output. d. By putting unemployed resources to work or by putting already employed resources to better uses, we could shift out the production possibilities curve.
Suppose the Fed sells $100 million of U.S. securities to the public. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a
a. $100 million decrease. b. $500 million increase. c. $500 million decrease. d. $100 million increase.
The quantity and quality of a country's labor, land, and natural resources are that country's factor endowments.
Answer the following statement true (T) or false (F)