The standard deviation is generally more useful than the variance because:
A. variance is a measure of risk, where standard deviation is a measure of return.
B. it can measure unquantifiable risk.
C. it is easier to calculate.
D. standard deviation is calculated in the same units as payoffs and variance isn't.
Answer: D
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The interest rate at which businesses borrow to fund their investments is higher than the real interest rate for short-term, safe loans, because ________
A) business borrowers sometimes default on their loans B) autonomous investment is not dependent on borrowed funds C) the central bank controls the short-term, safe interest rate D) the interest rate is negatively-related to business optimism E) all of the above
Consumers are better off with pricing in the following order: 1)________; 2)________; 3)________
A) competitive market; perfect price discrimination; single-price monopoly B) competitive market; single-price monopoly; perfect price discrimination C) single-price monopoly; competitive market; perfect price discrimination D) Unable to determine.
Which of the following is not a major trading partner of the U.S.?
A. Canada B. Mexico C. Russia D. China
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.