Historically, government bonds have averaged a real return of about ________ percent, while a broad index of stocks generates a ________ percent return over the same period.
A. 7; 2
B. 2; 7
C. 12; 7
D. 7; 12
Answer: B
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Government intervention in a perfectly competitive market
A) reduces economic well-being. B) is an illustration of the "invisible hand theorem." C) increases economic well-being. D) guarantees maximized well-being.
Improvements in labor productivity
A) affect the level of wages, but do not affect the rate of economic growth. B) affect the level of profit, but do not affect the rate of economic growth. C) hinder economic growth, because they cause unemployment. D) contribute to economic growth.
Which of the following is false?
a. Products with more close substitutes have more elastic demand b. The demand for any individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is most unequally distributed in
A. Country A. B. Country B. C. Country C. D. Country D.