Why is diversification recommended for investors?
Holding stock in companies that tend to move in opposite directions during a business cycle will help reduce the fluctuation in return, and so reduce the risk. This approach should yield a return comparable to the overall stock market.
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An important environmental objective is to preserve the variety of distinct species of animals and plants and the variety of ecosystems they inhabit. This is known as
a. biodiversity c. sustainable development b. risk assessment d. pollution prevention
Assume that you have taken over management of a small concession stand on a local beach for the summer. Your main product is iced water, popular on hot days. You've been selling 400 cups per day at 50 cents each. The cups cost 5 cents each. One of your customers suggests that you cut the price to 40 cents to make more money. For the customer to be correct, how much must your sales increase?
When the quantity demanded and quantity supplied in a market are equal, the market is said to be in
a. fixation. b. excess supply. c. equilibrium. d. excess demand.
The enforcement of contracts by the government:
A. allows people to enter into long-term investments more easily. B. encourages economic growth. C. can increase physical capital investment. D. All of these are true.