Diversification puts "the law of large numbers" to work for you because it
What will be an ideal response?
lowers the chance that a reduction in the market value of a single asset like a corporate stock will significantly reduce your overall portfolio return.
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Refer to the table above. Laborland's net factor payments from abroad equal ________
A) -$18 billion B) -$20 billion C) $25 billion D) $20 billion
What is a "social cost" of production?
A) the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product B) the cost of the environmental damage created by production C) the total costs of producing a product, both implicit and explicit costs D) the cost of the natural resources used up in production
Assume the price of beer is $4, the price of pizza is $10 and the consumer's income is $250. Which consumption bundle will NOT be the consumers choice?
A) 5 beers, 5 pizzas B) 0 beers, 25 pizzas C) 25 beers, 15 pizzas D) None of the bundles will be chosen.
Specialization according to comparative advantage, followed by trade, allows everyone to acquire more of the goods they want
a. True b. False Indicate whether the statement is true or false