In an article, "Preparing for the Next Black Swan" (Wall Street Journal, Aug 21, 2010), the point is made that diversification may be insufficient in protecting one's portfolio during a "Black Swan" event. Why may this be true?
A) virtually all asset classes may decline at the same time
B) investors may be unable to buy different assets during a "Black Swan" event
C) some assets may rise while others decline during a "Black Swan" event
D) Black Swan events are surprises and thus one cannot prepare for such an event.
A
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The successes of the 1960s were ascribed to the effects of
A. classical policies from the 1800s. B. classical policies from the 1930s. C. classical policies from the 1950s. D. Keynesian policies from the 1930s. E. Keynesian policies from the 1950s.
For each of the following functions, describe returns to scale.
1. Q = K + L 2. Q = K1/2L3/4 3. Q = K2L
If the price of hamburger buns increases, the demand for ground beef is predicted to:
a. Decrease b. Shift to the right c. Increase d. Remain constant
Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that:
A. the terms of trade will be 3X equals 1Y. B. Alpha should specialize in Y and Beta in X. C. Alpha should specialize in X and Beta in Y. D. there is no basis for mutually beneficial specialization and trade.