Banks develop statistical models to calculate their maximum loss over a given time period. This approach is known as the
A) stress-testing approach.
B) value-at-risk approach.
C) trading-loss approach.
D) doomsday approach.
B
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Suppose that a product benefits from a successful advertising campaign. The result is that
A) the supply of the product decreases. B) the supply of the product increases. C) the demand for the product increases. D) the demand for the product decreases.
The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:
a. monopolization and conspiracies to restrain trade. b. mergers the substantially lessen competition. c. exclusive dealing, tying contracts, and interlocking directorates. d. unfair methods of competition in commerce.
Technically speaking, maximizing profit means finding the maximum difference between
a. TR and TC b. MR and MC c. price and ATC d. price and AR e. ATC and MC
Suppose that there are 175 voters in an election and that 80 of them prefer a $100 budget while the remainder prefer a $150 budget. Which of the following statements is true?
a. The Condorcet Paradox predicts that the $100 budget will win even though fewer people prefer that budget. b. The median voter theorem predicts that the winning budget will be $125, the median of the preferences of the two types of voters. c. Arrow's impossibility theorem says that the winning budget cannot be determined in this election since there is no unanimity. d. None of the above.