Private ownership and property rights in a market system have the following implications, except:
A. Individuals are free to take on the financial risks involved in a business
B. Trades that take place in the economy are mutually-agreeable transactions among individuals
C. Economic agents are allowed to act in their own self-interest
D. Large firms are allowed to coerce other firms and individuals
Answer: D
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There is no completely satisfactory way to define the money supply in the United States because
A) data on the money supply are always approximate and only available after a time lag of several months. B) much of it is held by the public and so cannot be monitored by the Fed. C) the Federal Reserve uses a number of different definitions. D) the liquidity of any asset is a matter of degree.
In reference to industrywide advertising, managers of non-agricultural and non-franchised industry associations face which of the following problems?
A) The participating firms can both free -ride and protest the amount they are asked to pay for the advertising. B) The participating firms can protest the amount they are asked to pay for the advertising, but they cannot free -ride. C) The participating firms can neither free -ride nor protest the amount they are asked to pay for the advertising. D) The participating firms can free-ride, but they cannot protest the amount they are asked to pay for the advertising.
Price controls:
a. are always popular with consumers because they lower prices. b. create shortages. c. increase producer surplus because firms can now sell a greater quantity of a good at a lower price. d. are necessary to preserve equity.
Susan is planning to invest in one of four stock portfolios, and her financial advisor has given her details regarding the risk associated with each portfolio. Which of the following portfolios would you expect to have the lowest average annual rate of return?
a. A portfolio with a standard deviation of 3%. b. A portfolio with a standard deviation of 6%. c. A portfolio with a standard deviation of 9%. d. A portfolio with a standard deviation of 12%.