Which of the following is true?
A. Investments that pay a return over a longer time horizon generally have less risk.
B. Risk-free investments are the best benchmark for measuring the risk of all investment strategies.
C. Investments with a greater variance in the size of the future payoff generally pay a lower expected return.
D. Investments with higher risk generally have a higher expected return than risk-free investments.
Answer: D
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John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina receives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy
What is the economy's marginal social benefit from one missile? A) $50 B) $65 C) $80 D) $195
Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality
What did Pigou believe should be done in the case of a positive externality in consumption? How would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality?
Capitalism is an economic system in which there is public ownership of the means of production and resource allocation is determined through markets
a. True b. False Indicate whether the statement is true or false
Suppose that an employer hires workers with blue eyes and workers with brown eyes. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?
a. The employer will be just as cost efficient as a nondiscriminating employer. b. The employer will face higher costs than a nondiscriminating employer. c. The employer will have lower costs. d. The employer will have higher profits. e. Both a and c are correct.