Which of the following statements is false?
A. Diversification can reduce risk but only by reducing the expected return.
B. Diversification reduces idiosyncratic risk.
C. Diversification can reduce risk.
D. Diversification allocates savings across more than one asset.
Answer: A
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To protect the environment, governments in the United States have mainly used
A. legally enforceable direct controls on pollution. B. taxes on goods whose production creates pollution. C. direct taxes on emissions. D. discretionary guidelines suggested to polluting firms.
If the expected future exchange rate decreases, then the supply of dollars ________ and the demand for dollars ________
A) increases; increases B) decreases; increases C) increases; decreases D) decreases; decreases E) does not change; does not change
Perfectly competitive markets:
A. tend to have relatively few sellers. B. are more of an idealized model economists use than a real-life occurrence. C. tend to have relatively few buyers. D. are the most common type of market in the United States.
A workplace that requires workers to become union members within 30 days of being hired by a firm is
A. The AFL-CIO. B. A craft union. C. An industrial union. D. A union shop.