A risk-averse investor will:
A. always prefer an investment with a certain return to one with the same expected return but that has any amount of uncertainty.
B. always require a certain return.
C. always focus exclusively on the expected return.
D. never prefer an investment with a lower expected return.
Answer: A
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If an economy is producing inefficiently, it is
A. possible to increase production of all goods simultaneously. B. possible to increase production of one good at the expense of another. C. not possible to increase production of any good. D. not possible to increase economic growth. E. possible to increase production with no effort.
If there is an increase in the amount of currency held outside banks, then the
A) quantity of money and the monetary base will decrease. B) monetary base will decrease. C) quantity of money will increase. D) quantity of money will not change. E) quantity of money will decrease.
The corporation with the largest dollar loss in 2008 was
A. AIG. B. Fannie Mae. C. General Motors. D. Merrill Lynch.
Some economists believe that one of the following improvements in the tax code could lead to more technological progress.
A. A tax on nominal rather than real capital gains B. A tax on real rather than nominal capital gains C. A tax on capital rather than labor D. investment A tax on labor rather than capital