The ability of diversification to reduce risk
A) is greater the more negatively correlated the two events are.
B) is greater the more positively correlated the two events are.
C) is greater the more uncorrelated the two events are.
D) is greater the more risk averse the individual is.
A
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According to the Application, in 1960 the Cuban government
A) did not allow people to sell or rent their homes. B) caused a large shortage of housing as a result of its policies. C) confiscated most housing in the country. D) all of the above.
Other things the same, a government budget deficit
a. reduces public saving, but not national saving. b. reduces national saving, but not public saving. c. reduces both public and national saving. d. reduces neither public saving nor national saving.
We depart from the assumptions of classical economics when we focus on the relationship between
a. the quantity of output and the price level. b. the quantity of output and the unemployment rate. c. the price level and the inflation rate. d. inflation and the nominal interest rate.
The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to increase the production of specialized color printers as long as marginal cost
A. is greater than marginal revenue. B. is less than marginal revenue. C. is positive. D. equals marginal revenue.