The more leveraged an investment, the ________ the potential gain and the ________ the potential loss from that investment
A) greater; greater
B) greater; smaller
C) smaller; smaller
D) smaller; greater
A
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"Inflation acts as a tax because the government gains purchasing power." Is the previous statement correct or incorrect?
What will be an ideal response?
An example of an implicit cost is
a. rent. b. taxes. c. wages. d. forgone interest when investing one’s savings in one’s own business.
How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?
A) 50 dollars B) 60 dollars C) 70 dollars D) 62.5 dollars E) 40 British pounds
Which of the following features is associated with imperfect competition?
a. Homogeneity of products b. Positive economic profits c. Freedom of entry and exit d. Large number of firms