Which of the following would not be included in a definition of risk?
A. Risk has a time horizon.
B. Risk is a measure of uncertainty.
C. Risk can always be avoided at no cost.
D. Risk usually involves some future payoff.
Answer: C
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Refer to Table 18-1. Suppose a series of votes are taken in which each pair of alternatives is considered in turn. The first pair considered is between subsidies for education and research on Alzheimer's
The second pair considered is between Alzheimer's research and increased border security. The third pair considered is between education subsidies and increased border security. In this case, the collective preferences of the voters A) turn out to be transitive and will yield a consistent outcome. B) turn out not to be transitive but will yield a consistent outcome. C) turn out not to be transitive and will not result in a consistent outcome. D) turn out to be transitive but will not result in a consistent outcome.
Which of the following events could account for the situation shown?
a. an increase in natural resources
b. a change in the expected price level
c. an increase in government regulations
d. a temporary decrease in an input price
A minimum price, set by the government, that sellers may charge for a good is known as
A. a price rationing mechanism. B. a subsidy. C. a price ceiling. D. a price floor.
Two drawbacks in using fiscal policy as a stabilization tool are that fiscal policy can affect ________ as well as aggregate demand and that fiscal policy is ________.
A. consumption; offset by automatic stabilizers B. potential output; not flexible enough C. potential output; offset by automatic stabilizers D. consumption; too flexible