What are four general sources that contribute to uninstallable risk?
What will be an ideal response?
Uninstallable risks are mainly due to uncontrollable and unpredictable changes in the demand and supply conditions for a business. There are four general sources: (a) changes in the economic environment due to such factors as recession; (b) changes in the structure of the economy such as a decline in a particular industry; (c) changes in government policy that affects a business; and (d) new products or production methods developed by rivals. The changes can be positive for a business, in which case profits should rise, or they can be negative for a business, in which case profits will fall.
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________ economies include ________
A) Advanced; France, Australia and South Korea B) Advanced; the U.S., Taiwan and Russia C) Advanced; Russia, Canada and Singapore D) Emerging; Taiwan, Russia and Singapore E) Emerging; Saudi Arabia, Poland and Taiwan
If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry
A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.
If the government wants a natural monopoly to earn a "fair return" or zero economic profit, it will set
a. price equal to marginal cost. b. price equal to average total cost. c. price equal to average revenue. d. marginal cost equal to marginal revenue. e. marginal cost equal to average total cost.
No nation needs default on debts that call for repayment in its own currency. However, Russia astounded the financial world in 1998 by choosing to default on its
A. dollar denominated debt. B. ruble denominated debt. C. British sterling pounds denominated debt. D. none of these.