What is the basic motive for asset trade?
A) the belief that large risks will lead to large returns
B) restoration of the balance of payments
C) portfolio unification
D) economic stability
E) increase expected returns and reduced risk
E
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What will be an ideal response?
What is the marginal rate of substitution and how does it relate to an indifference curve?
What will be an ideal response?
A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) that it does not eliminate pollution completely. D) it discourages firms from implementing cost-effective pollution control technology.
Changes in business inventories are known as
A) consumer durable. B) consumption goods. C) fixed investment. D) inventory investment.