We may not be able to fully remove risk by diversification if:
A) a completely risk-free asset does not exist.
B) the asset returns in our portfolio are positively correlated.
C) buying stock on margin is not allowed by financial regulators.
D) none of the above
B
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In which of the following countries are taxes (measured as a percentage of GDP) the lowest?
a. Canada. b. France. c. Sweden. d. The United States.
Which of the following is most likely to increase the money wages that will be required to attract a given number of workers into a job category?
a. the employer does not discriminate. b. the work is widely viewed as being stressful and dangerous. c. the job is widely viewed as prestigious. d. the employer provides child care on the premises.
Which is the most accurate statement about Wal-Mart?
A. It proves the case that bigness is always bad. B. It proves the case that bigness is always good. C. Directly and indirectly it saves American consumers up to $100 billion a year. D. It has used its monopoly power to force price increases.
How does the original, simplified Keynesian model compare with modern Keynesian analysis?
A. In both cases, the short-run aggregate supply curve (SRAS) is horizontal. B. The original Keynesian model assumed price flexibility whereas the modern analysis does not. C. Modern analysis shows an upward sloping SRAS to reflect some price flexibility. The original Keynesian model's SRAS is horizontal and assumes sticky prices. D. all of these