Assets whose returns have a high positive correlation are considered:
a. highly risky compared with those whose returns have lower or negative correlations..
b. completely risk free.
c. less risky compared to those which have a low positive correlation.
d. partially risky.
A
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When governments subsidize retraining programs for unemployed workers to learn new skills, they are trying to minimize the effects of which kind of unemployment?
A. Frictional B. Structural C. Seasonal D. Real-wage
Explain the economics of why the refund might be set higher than the deposit.
State officials are establishing a deposit/refund system for batteries. Marginal costs and benefits have been estimated to be: MPC = 5 + 0.5Q MPB = MSB = 20 – 0.5Q MSC = 5 + 0.7Q, whereQ is in millions, and the marginal cost and benefit values are in dollars per battery.
When there is excess aggregate demand, the appropriate fiscal policy would be for the government to
A. Increase the public debt. B. Make budget deficits larger. C. Make budget surpluses larger. D. Make budget surpluses smaller.
Which of the following is most likely to be overconsumed?
A. Free water B. Tap water C. Sparkling water D. Bottled water