Brinley holds stock in large high-tech companies in his portfolio. The best way for Brinley to diversify his risk would be to buy:
A. more shares of the stock he already owns.
B. shares in other large high-tech companies.
C. bonds or stocks of small and medium-sized companies.
D. bonds from the large high-tech companies already in his portfolio.
C. bonds or stocks of small and medium-sized companies.
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Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods, but country 1 produces twice the output of both types of goods compared to country 2. It follows that
A) country 1's PPF lies further to the right than country 2's PPF. B) country 1 has a smaller population than country 2. C) country 1 has a bigger population than country 2. D) country 1 is efficient and country 2 is inefficient. E) none of the above
Refer to the graph shown. A decrease in aggregate demand in the short run is likely to cause a movement from:
A. B to A. B. B to D. C. C to D. D. C to A.
Refer to the above diagram, in which S1 and D1 represent the original supply and demand curves and S2 and D2 the new curves. In this market:
A. the new equilibrium price and quantity are both greater than they were originally. B. point M shows the new equilibrium position. C. an increase in demand has been more than offset by an increase in supply. D. the equilibrium position has shifted from M to K.
The period in the U.S. economy from 1995 to 2012 is characterized by:
A. a higher trend rate of saving. B. a higher natural rate of unemployment. C. a higher trend rate of productivity growth. D. the end of the business cycle.