Household investment choices need to be balanced between the expected return and the degree of risk involved. There is also the question of liquidity, which means how quickly you can convert the asset back into cash. Which of the following represents an investment with medium return, high risk, and low liquidity?
a. Precious metals
b. House
c. Mutual funds
d. Savings account
a. Precious metals
Precious metals like gold tend to have high risk and low liquidity with only a medium return.
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"Suppose the market for aluminum is perfectly competitive and unregulated. If aluminum factories emit pollution, the marginal social cost of aluminum is less than the market price". True or false? Explain
What will be an ideal response?
Suppose a report on the internet indicates that job prospects for graduates are bright because full employment is achieved automatically. Economists are likely to
a. be disappointed in the degree of economic understanding possessed by the author of the report b. be excited about the earning potential of new entrants into the labor market c. be anxious about inflationary indicators d. anticipate a recession e. encourage a tax cut to stimulate the economy
Several related measures of cost can be derived from a firm's total cost
a. True b. False Indicate whether the statement is true or false
Figure 30-3. On the graph, MS represents the money supply and MD represents money demand. The usual quantities are measured along the axes.
