Whenever individuals think about investing money in stocks, bonds, or real estate, they must consider:
A. the opportunity cost of the risk involved.
B. the trade-off between future value and expected value.
C. the trade-off between risk and expected value.
D. the opportunity cost of the expected value.
Answer: C
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In the presence of negative pollution externalities, it is more efficient to have Cournot competitors than Bertrand competitors.
Answer the following statement true (T) or false (F)
If the Fed wishes to decrease the supply of money and credit, it may sell government securities, raise the discount rate, or lower required reserve ratios
Indicate whether the statement is true or false
Residents of Hong Kong are able to find restaurants that advertise a dish that contains grizzly bear paws. Since it is unlikely that grizzly bear paws are purchased from a private producer of animal paws, we can likely conclude that
a. international laws making it illegal to sell grizzly bear paws are likely to be very effective at eliminating these offerings at Hong Kong restaurants. b. higher penalties for poaching grizzly bears will prevent poachers from killing. c. there are likely to be very few grizzly bear poachers. d. allowing individuals to own and raise grizzly bears for meat would likely reduce the threat of extinction to grizzly bear populations.
Refer to the above figure. A movement from Point A to Point B is caused by
A. a decrease in the price of the good in that figure. B. an increase in income. C. an expectation of a decrease in the price of the good in that figure. D. all of these.