A risk premium is the added return an investor needs to compensate for the risks of future payments.
Answer the following statement true (T) or false (F)
True
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In the labor market, adjustments to changes in supply and demand
A) usually occur instantly. B) usually take time to occur. C) do not apply, since the labor market does not respond to supply and demand forces. D) do not apply, since wages in the labor market always go up.
In perfect competition, as the long run approaches, economic losses will cause
a. the exit of existing firms, shifting the market supply curve to the left b. government regulation c. technological innovation d. inflation e. a favorable shift in tastes and preferences
If a natural monopolist were forced to set price equal to average cost, it would:
A. suffer losses. B. earn a normal profit. C. be forced to produce more than the socially optimal level of output. D. earn excessive profit.
Each year, Americans visiting casinos gamble a total of
A. $300 billion. B. $3 million. C. $38 billion. D. $30 million.