Political advocacy:
A. and political engagement can suffer from the free-rider problem.
B. is not affected by the free-rider problem, but political engagement is.
C. can suffer from the free-rider problem, but political engagement does not.
D. and political engagement are not affected by the free-rider problem.
A. and political engagement can suffer from the free-rider problem.
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A perfectly competitive market is characterized by
A) high barriers to entry. B) firms that are price setters. C) firms facing a downward sloping demand curve. D) no restrictions on entry into the market.
In the figure above, U.S. producers' ________ from the tariff is ________
A) loss; $32 million B) loss; $64 million C) gain; $80 million D) gain; $128 million
Which of the following is true?
A) In the long run, corporate bonds can be expected to yield a higher real rate of return than ownership of stocks. B) The risk of stock market investments can be reduced through the holding of a diverse portfolio of unrelated stocks over long periods of time. C) Stock market investors can reduce their risk if they hold shares of specific stocks for only short periods of time. D) People who invest in the stock market are virtually certain to make money.
Suppose your employer offers to match funds you place into a savings plan as long as you purchase the company stock and hold it for at least three years. Which of the following is true?
A) You should not put funds into this plan unless you expect to hold the company stock for at least ten years. B) You should allocate funds into this plan if the company management recommends it. C) It can be attractive to put funds into a plan like this but you should sell your company stock when permitted in order to diversify your portfolio. D) It does not make any sense to put funds into such a plan.