An investment with a large spread between possible payoffs will generally have:
A. a low expected return.
B. a low value at risk.
C. a high standard deviation.
D. both a low expected return and a low value at risk.
Answer: C
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Refer to the figure below. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________. 
A. fall; fall B. fall; rise C. rise; fall D. rise; rise
Use the following graph to answer the next question.
Suppose the economy is in equilibrium at point C. A personal income tax cut would most likely
A. move the economy upward from point C along AD1. B. cause the AS curve to shift to the right. C. move the economy downward from point C along AD1. D. move the economy from point C toward point B.
The price elasticity of demand for eggs is 0.27. Therefore, an increase in the price of eggs will cause:
A. a decrease in egg suppliers' total revenue. B. an increase in the demand for eggs. C. an increase in egg suppliers' total revenue. D. an increase in the quantity demand of eggs.
It is assumed in economics that people make decisions based upon
A. altruism. B. tradition. C. perfect information about every aspect of the world. D. rational self-interest.