Which of the following is true?
a. People who invest in the stock market are virtually certain to make money.
b. Investors in the stock market can reduce their risk if they hold shares of specific stocks for only short periods of time.
c. The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time.
d. In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks.
C
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If the Federal government expands its support of education and retraining of workers who have been unemployed for a relatively long length of time, which type of unemployment would the education and retraining most likely be targeted?
A) discouraged B) cyclical C) structural D) frictional E) government
Suppose that the US market for soybeans is not open to international trade. Currently, soybeans sell for $6.00 per bushel in the US and the world price for soybeans is $8.00 per bushel. This information implies that
a. the US has an absolute advantage in the production of soybeans and if the market opens to international trade, the US would export soybeans. b. the US does not have an absolute advantage in the production of soybeans and if the market opens to international trade, the US would import soybeans. c. the US has a comparative advantage in the production of soybeans and if the market opens to international trade, the US would export soybeans. d. the US does not have a comparative advantage in the production of soybeans and if the market opens to international trade, the US would import soybeans.
Refer to the budget line shown in the diagram above. Given the same money income, reductions in the prices of both products C and D will:
A) shift the budget line outward on the horizontal axis, but leave it anchored at "10" on the vertical axis. B) shift the budget line to the left. C) shift the budget line to the right. D) have no effect on the budget line.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.