The financial amount that a risk averse person requires to take on risk is called:
a. risk arbitrage.
b. risk bonus.
c. risk premium.
d. risk capital.
e. risk rate.
c
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Explain why the variance of an investment is a useful measure of the risk associated with it
What will be an ideal response?
Which statement is true?
A. In 1911 the Supreme Court decided to break up the oil and tobacco trusts. B. The rule of reason today is partially in force. C. Until the ALCOA case, the Supreme Court generally held that bigness was all right as long as the company wasn't bad. D. All of the statements are true.
Which of the following is not a reason why specialization and trade are beneficial to society?
A. The total output of economic goods may be increased even without any increase in resources B. Scarce resources are utilized more efficiently by exploiting differences among them C. Specialization fosters learning by doing, thus lowering the unit-costs of products D. Firms and workers become less dependent on others for producing goods and services
Quantity of Frozen Latte-On-A-Stick SuppliedPriceFlo's SupplyRita's Supply10020334649951512
Refer to Table 3.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, if the market quantity supplied is 3, the price must be:
A. $0. B. $2. C. $4. D. $5.