The risk premium is
A) the amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset.
B) a measure of the riskiness of the overall economy in a domestic country compared with a foreign country.
C) the amount an investor must pay to insure his or her stock portfolio to protect against a fall in value.
D) the amount an investment bank charges to guarantee an annuity that pays a fixed rate of return in the future.
A
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The Sherman Act of 1890 was passed to prohibit
A) combinations, trusts, or conspiracies to restrict interstate or international trade. B) monopolization or attempts to monopolize interstate or international trade. C) both of the above. D) neither of the above.
Refer to Figure 16-3. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) a decrease in interest rates B) an increase in the money supply C) a decrease in income taxes D) a decrease in government purchases
A disadvantage associated with in-kind transfers to reduce poverty is that they
a. alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b. do not allow poor families to make purchases based on their preferences. c. can only be distributed by the federal government. d. cannot restrict the group of recipients and some middle-class families may benefit from them.
________ unemployment measures those out of work during the off-season, such as those employed in snow- or beach-related industries, agriculture, and/or holiday activities.
A) Seasonal B) Frictional C) Structural D) Cyclical E) Temporary