Refer to the graph. The point Y represents the:
A. Rate of return for the market portfolio
B. Rate of return for the risk-free asset
C. Risk premium for the market portfolio
D. Compensation for time preference for a given asset
B. Rate of return for the risk-free asset
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Human capital refers to which of the following?
A) physical equipment that is made by human laborers, not machines B) manufactured goods that are used to produce other goods and services C) the quantity of goods and services that can be produced by one worker or by one hour of work D) the accumulated knowledge and skills workers acquire from education and training or from their life experiences
When the Federal Reserve sells a government bond to a primary dealer, reserves in the banking system ________ and the monetary base ________, everything else held constant
A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases
When a market is efficient:
A. there is no exchange that can make anyone better off without someone becoming worse off. B. a central planner must be involved. C. total surplus is zero. D. an increase in price will reduce the deadweight loss.
Rivalry among firms would tend to be high if
a. Customers are locked into the competitors technology b. Customers can easily switch between competitor's technologies c. All of the above d. None of the above