Risk
a. can be reduced by placing a large number of small bets rather than a small number of large bets.
b. can be reduced by increasing the number of stocks in a portfolio.
c. Both A and B are correct.
d. Neither A nor B are correct.
c
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Which of the following best defines "economies of scope"?
A) As output expands the cost of producing a good decreases. B) As output expands the cost of producing a unit of a good decreases. C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases. D) Costs increase as firms seek to find more consumers.
Which of the following would be illegal under the Robinson-Patman Act?
a. Ford and General Motors meet to fix the price of cars. b. Computer makers form a cartel. c. General Mills and Kelloggs decide to merge. d. Exxon sells gas at a higher wholesale price to independent gas retailers than to Exxon retailers. e. Exxon Oil and Mobil Oil elect the same person to their boards of directors.
Other things held constant, when the general price level changes:
a. we move along the aggregate demand curve. b. we shift the aggregate demand curve to the right. c. we shift the aggregate demand curve to the left. d. we shift the aggregate supply curve to the right. e. we shift the aggregate demand curve to the left.
In the last four decades, the share of income going to U.S. households in the top fifth of the population:
a. has declined. b. has increased. c. has remained the same. d. has decreased by 50 percent.