Diversification
A) puts the law of large numbers to work for you.
B) eliminates the risk of investing in the stock market.
C) generally leads to lower rates of return than an average stock picker could earn from equity investments.
D) indicates that you should invest in the company for which you work and in whom you trust.
A) puts the law of large numbers to work for you.
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Use the figure below to answer the following question. 
A decrease in supply is depicted by a
A. movement from point x to point y. B. movement from point y to point x. C. shift from S2 to S1. D. shift from S1 to S2.
How do legal controls on prices lead to corruption?
A. Persons who benefit from the controls are willing to bribe officials to keep the controls in place. B. Persons who make the laws may favor certain groups at the expense of others. C. Selling in the black market is very profitable, and persons therefore willingly break the law. D. Discrimination may occur as a means to limit buying or selling select groups. E. All of these responses are correct.
Price elasticities of supply are always:
a. the same as price elasticities of demand. b. negative numbers. c. positive numbers. d. greater than one. e. increased when a tax is imposed.
If the price of milk shakes was $3.00 each, your consumer surplus would be
Demand and Utility Table for Milk Shakes
A. $10.50.
B. $6.00.
C. $3.50.
D. $1.50.