Diversification in one's investments reduces:
A. Idiosyncratic risk
B. Pooling risk
C. Systemic risk
D. Time preference risk
A. Idiosyncratic risk
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A demand curve generally
a. is a straight horizontal line. b. is a straight vertical line. c. slopes downward to the right. d. slopes downward to the left.
Labor resources include:
a. skilled workers but not unskilled workers. b. unskilled workers but not skilled workers. c. a robot. d. education and training of workers. e. coffee breaks.
If muffins and bagels are substitutes, a higher price for bagels would result in a(n)
a. increase in the demand for bagels. b. decrease in the demand for bagels. c. increase in the demand for muffins. d. decrease in the demand for muffins.
As the interest sensitivity of investment demand increases, the size of the crowding-out effect increases.
a. true b. false