Refer to the graph. Which of the three Security Market Lines would represent a situation where investors do not care about the risk level of a financial asset?
A. Line A.
B. Line B.
C. Line C.
D. None of these.
A. Line A.
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Refer to Table 2-1. Assume Tomaso's Trattoria only produces pizzas and calzones. A combination of 36 pizzas and 30 calzones would appear
A) along Tomaso's production possibilities frontier. B) inside Tomaso's production possibilities frontier. C) outside Tomaso's production possibilities frontier. D) at the horizontal intercept of Tomaso's production possibilities frontier.
Government policies to raise the rate of productivity growth include all of the following except
A. improving infrastructure. B. improving human capital development. C. encouraging research and development. D. reducing the government budget surplus.
Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
a. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased. b. your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased. c. your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased. d. your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.
Inflation can be defined as
A. an overall decline in average prices. B. the situation that exists when exports exceed imports. C. an overall increase in average prices. D. an increase in most prices.