A technique that can be employed to make a portfolio less risky than any of its individual securities is
A. plowback.
B. diversification.
C. programmed trading.
D. speculation.
Answer: B
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Increasing marginal returns to labor might occur at low levels of labor input because of
A) increasing average costs. B) differing factor proportions. C) increasing specialization of tasks. D) decreasing use of machinery and increasing use of technology.
Suppose a certain good provides an external benefit. If the private cost of the last unit of the good that was produced is equal to the social value of that unit, then the sum of producer and consumer surplus is maximized
a. True b. False Indicate whether the statement is true or false
All of the following are true about a monopolist EXCEPT
A) the demand curve for its product is perfectly elastic. B) it produces a product with no close substitutes. C) its demand curve is the same as the market demand for the industry. D) it is a single seller of a good or service.
The Mexican demand for American goods leads to the demand for:
A. U.S. dollars and the supply of Mexican pesos on the foreign exchange market. B. U.S. dollars and the supply of U.S. dollars on the foreign exchange market. C. Mexican pesos and the supply of U.S. dollars on the foreign exchange market. D. U.S. dollars and Mexican pesos on the foreign exchange market.