If two events are positively correlated but NOT perfectly correlated, then
A) diversification is not necessary since there is no risk.
B) diversification eliminates all risk.
C) diversification does not reduce risk at all.
D) diversification can reduce risk.
D
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A perfectly elastic demand curve
a. Is a horizontal line parallel to the x axis b. Has an elasticity of demand between 0 and 1 c. Is the demand curve of a product that usually has no substitutes d. None of the above
Figure 10-7
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In Figure 10-7, through which point must a horizontal demand curve pass to yield a long-run equilibrium?
A. A B. B C. C D. All of these are correct.
For the world as a whole, economic freedom increased since 1994 as the countries opened up in the world market and the governments slashed tax rates
a. True b. False Indicate whether the statement is true or false
The principle of diminishing marginal utility says that
a. as more of a good or service is consumed, demand will decrease. b. as more of a good or service is consumed, the price will rise. c. the marginal utility of additional units consumed will increase. d. the marginal utility of additional units consumed will decline.